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The worfcfe most 
expensive 
twist suiting doth 



MANUFACTURERS 6. SUPPLIERS 
OF BUILDING A CHEMICAL PRODUCT S 
FOR THE CONSTRUCTION INDUSTRY. 


PUBLISHED IN LONDON AND FRANKFURT 


US 




Thursday June 10 1982 


***30p 




' TiJ 


and Rank 







COWriNSCTAL SELLING. PRIDES: 


. . ... Thursday June 10 1982 *** 30 p . <§jp ; | \\C 8 Clf>Ja^W 

K^di.W MEUHUM FflJR jpjjhUMK KrB.BOj FRANCE FrS.OOS GERMANY DM2*; ITALY L 1,000; NETHERLANDS FI 2.25; NORWAY KrMOs PORTUGAL EaoGft. SPAIN P»8SJ 8VWDEN Krfi.OO; SWTTZBUAND *2.0; EIRE BOp; MALTA 30a 


4 


saauml 


W 


GENERAL 


BUSINESS 


Reagan Equities 


confirms 
U.S. role 


off 6.7; 


in 


dollar up 
in London 


A strong; emotional commit- 
ment to continued U.S. defence 
of Western Europe was made 
to West Germany's parliament 
by President Ronald Reagan, at 
the start of his official visit. 

Any move in Washington to 
cut the level of l JJS, forces 
would be opposed firmly by his 
Administration, he made dear. 
He said: “ We' are with yon, 
Germany. You are not alone.” 
Back Page • 


• DOLLAR rose to dose in 
London at DM 2.415 (DM 2.405), 
SwFr 2.0575 (SwFr 2.0435) and 


Dollar in LONDON 

_SA3M % 



Nurses’ pay 


There, was no question of any 
more money being available for 
nurses 1 pay, Social Services 
Secretary Norman Fowler said. 
The Royal College of Nursing, 
however, said he had not 
rejected outright its plea' for the 
6.4 per cent offer to be 
increased. 


STERLING 


One-party Kenya 

Kenya (became a one-party state 
under the Kenya African Nat- 
ional Union after parliament 
approved a Bill unanimously. 
It hsis. been a de facto one-party 
state since a short-lived oppo- 
sition party was dissolved in 
1969. 


Y24&9 (Y2464), Its highest 
against the yen since April 1980. 
Its trade-weighted index was 117 
(11M). Page 44 . 


• STERLING fell 80 points on 
the day in London to $1,774. It 
rose to DM 4485 (DM 44775), 
SwF r 3.6525 <SwF r 3.6425) and 
FFr 1L17 (FFr 1L1175)- Its 
trade-weighted index was un- 
changed at 90.9. Page 44 


Ship ablaze 


Firefighting vessels fought a 
blaze; on the 13478-ton Greek 
cargo ship Mano Maria, carrying 
200,000 tonnes of diesel ail. off 
Lampedusa Island, near Sirily. 


• EURODOLLAR bond market 
continued its . shake-out with 
prices falling f point on 
average. Page 28 


Homosexual vote 


'• GOLD fell $2 in London to 
dose at $328475. In New York 
the ' Comex June dose was 
$3274 ($33L5). Plage 27 


The ' Labour: Party nations! 
executive committee voted nine 
to eight against reducing 1 ' the 
age of consent for male homo- 
sexuals from 21 to 16. 4 


• EQUITIES: the FT 30-share 
Index feU 6.7 to 5874. Page 43 


Pol icoassessors:" 

Independent^ assessors; should, 
take port in inve^rgatmg- com- 
phdnts against police. & Com- 
mons, select committee reported. 
Page l2 .- • '• 


• GILTS: the .. Government 
Securities Index dropped 046 
tv JkU. Page 4S • . c ■ 


• .WALL STREET was down 
9.71 at 79242 near , the dose. 
Page-42 ' " 


Seven-sided row 


Mitterrand tp cot 
public spending 


Busmen staged a .five-hour 
strike at Bootle ..because ticket 
change-machines -were' 1 "’not; yetr 
adapted to take the seveh-slded 
20p piece introduced yesterday.; 


BBC sued ••• .'■■•f'V::; • 

A Iiberian shipowner is- suing' 
the BBC over a television pro- 
gramme on slops - operating 
under flags of ' convenience. 
Page s 


• PRESIDENT Mitterrand 
announced a further squeeze on 
government expendttfzre to 
reduce the- French . budget 
.deficit. ..but no anri-anfiatitm 
measures- Back Page . 


.# CHANCELLOR Geoffirey 
Howe announced tax conces- 
sions for the offshore oil 
industry worth:about £55m over 
the next two’ financial years. 
Page 10; Le% Back Page ' 


Nut safety pledge 


A Twickenham nuft company is 
to print a safety ■ warning on 
peanut packs .after chokfcng- 
soares among c&Kftea and 
lobbying by mothers, : 


Gift for RAF- ; 

Hong Kong businessman Stanley 
Ho gave more than £300,000 to 
the' RAF Museum, Hendon, in 
appreciation of ^ the service’s 
role in liberating the colony 
from the •• Japanese in World' 
War 3L 


• BRITISH STEEL Corporation 
chairman ' Jan MacGregor 
warned that a farther 17,000 
jobs are at riskrPage 10 


Korchnoi visas 


Chess grand master Victor 
Korchnoi’s wife Bella said .in. 
Leningrad she and their son 
were granted exit visas , to join 
her husband .in' the. West by 
June 27. 


Prince welcomed 

Thousands' welcomed the Prince 
of Wales to the Isle of Wight 
He unveiled a bust of Lord 
Mountbatten. once the island's 
lord lieutenant. • '• ... 


• UNDE, the West German 
engineering group, has. won a 
£71:4m contract from the 
Soviet Union to build a 250,000 
tonnes year .ethylene plant. 
Page 6 . 


Briefly 


Norwich and. Gatwick. airports 
were linked by a .daily-service, 
using aneigbt-seat Chieftain air- 
craft, ■ S . 


• WESTLAND, the helicopter 
group, saw- taxable profits faH 
to £6.05m from £12.4Sm for the 
six months to March 3L Page 
24; Lex, Rack Page 


Bus plunged off a bridge 
killing 55 and critically injuring 
35 in Chipuro, Zimbabwe. - 
Three - Britons -ditnbed TSictis 
Mt Xasabangma, 26^8flfit ■* . 
Florence wfth&’ew ‘permission 
for three RoBing Stones con- 
certs. 


• PEGLER -• HATTERSLEY, 
.‘domestic - heating unit maker, 
raised pre-tax profits to £16J7m 
(£10JB9m): for - the year to 
■March/27J ‘Page 24 


• MALAYSIA is raising a $lhn 
credit -in. the .Euromarkets. 
Page 2g • : 


CHIEF PRICE CHANGES YESTERDAY 

(Prices in pence unless otherwise indicated} ■ - • 


. RISES. 

AB Electronic . 205 + 18 

Brown (N.) lavs 135 + 7 

Cote Group 94 +9 

Extel * *....-.. 360 + 7 

Geers Gross 152 + 10 

Glass Gtover ; ; lg +. £ 

Great esxnaus A 280 + 50 


152 + 10 
14S + 0 . 
280 +' 50 


Midland Bank 355 + .5 


jfinet. 211 -H 7 

Pegter-Hattereley 222 ;+ 6 
Routledge K; Paul 220 + 20 
Tern-Consolate ..." 55 + 4- 

TUbniy Group .-.. , 525 + . 10 

Valor ........ €9 + 4 . 

Ljbanon 808. +. 20 

•: FALLS • ' 
Exchqr ll|pc 198B...£95J i 


-Treas rl2}pc 0M5.. JE961- *-• fr 

Babcock ... Ill ~ 8 

European Ernies 70 *-* 5£ 

GEC 948 ■-* 7 

Hanson Trust ...... 169 *-r 5 

Horizon Travel 200 *-? 8 

Johnson Gip . Clnrs 232 — K 
Kitchen (R.) Taylor 135 +* 6 
Lucas- &ds ......... -187 .«-* 5 

NimsTo 163 *— 22 

Notts Mnfg*... ^ 1SS 5 
Rilkingtim,-. 233 *-* 15 


Some-Sound ...... 57 

-iH 128 

Chanter pons -i«.. 195 
Cons Gold Fields... 345 
RTZ ...397 


-38 4 

57 »-3 
328. 10 

195 — 7 

345^.7 

397 —> 33 


? . 

Israel’s troops ‘entering Beirut 


BY DAVID LENNON AND ANTHONY McDCRMOTT 


• PLESSEY ... Is considering 
acquiring Strorab erg-Carlson, a 
medium-sized .UB. teteoom- 
munications equipment maker, 
from General Dynamics. Baric 
Page 


# CORK REPORT, proposed 
major changes in .insolvency 
law. Back. Page .. 


ISRAEL , appeared poised last 
night to take control of all 
Southern Lebanon. Its troops 
were reported to be entering 
Beirut, the Lebanese capital, the 
Lebanese Christian radio 
reported. 

. It claimed to have shot down 
. at least 22 Syrian fighters yester- 
day, and reported that ■Syrian 
forces were retreating from an 
Israeli advance up the strategic 
Bekaa valley from south-eastern 
Lebanon. 

. The Syrian aircraft were last 
in trying to prevent Israeli air- 
craft attacking surface-to-air 
missile sites in the valley. Mr 
.Ariel Sharon, the Israeli 
Defence Minister, described the 
destruction of the missiles as a 
“■turning point " in the fighting. 

Mr SChaxon, the chief archi- 
tect of the Israeli war in Leba- 
non, said yesterday evening 
-that Israel could now complete 
| its attacks against the artillery ' 
and rocket-launchers operated 
by Palestinian guerrillas under 
the protection of Syrian mis- 
siles. He said advancing Israeli 
-columns were hitting “ the 
enermy (Syrian) armour ” on 
the eastern front. 

While the army spokesman 
i in Jerusalem would neither con- 


firm nor deny (hat Israeli 
forces were entering Beirut 
Israeli a ir c ra ft flew over the 
capital for most of the day, 
dropping pamphlets to uxgere- 
sidenr s to riay off the streets 
and to mark their windows with 
.white sheets. 

The Israelis have been doing 
the same in towns they have 
taken since they invaded 
Lebanon on Sunday. 

The Israeli army spokesman 
said last mght that aH Israeli 
aircraft returned safely to base 
after the air batt&e during the 
strike on the Syrian missile 
sites. Syria admitted the loss 
of 16 aircraft^ bat ckrimed to 
have shot down 19 Israels air- 
craft. 

Mr Sharon said that, until 
yesterday, Israel had avoided 
attacking the Syrian forces and 
had tried by many means to 
persuade them Co stay out of 
tie fighting. “To my regret, 
the Syrians did not respond to 
these appeals, 1 ’ be said. 

After Cabinet approval in the 
morning to attack the missile 
batteries, and to go after the 
Palestinian forces operating 
from within the eastern 
Lebanese area controlled by 
Syrian forces, Israel launched 


its air strike and pushed, its 
troops irorthwards. through the 
Bekaa Valley. Completion, of 
that operation would leave 
Israel in control of nearly half 
of Lebanon — from Beirut in the 
west to Zahle in the east, dose 
to the Syrian border. 

With the advance up the 
Bekaa Valley well under way, 
Israel had effectively com- 
pleted its sweep . through 
southern and central Lebanon 
to destroy Palestinian guerrilla 
war machines. 

An Israeli force was also in a 
position to stop traffic on the 
Beirut-Damascus highway six to 
eight miles east of the Lebanese 
capita], but seemed not to have 
closed this main artery. To do 
so would cut off from the masses 
the estimated 4.000 Syrian 
troops in, and south of, Beirut. 

Israel was understood to be 
trying to reach cm agreement 
with Syria, whereby forces of 
each country would he able to 
travel on the highway without 
interfering with forces of tlte 
other. 

Mr Philip Habib, the U.S. 
special envoy, flew to Damascus 
yesterday in an attempt to per- 
suade the Syrians to accept an 
arrangement in Lebanon which 


EBANQNs 


Israelis res, 
entering B 


IsraeSs capture! 
Damour P 


Syrians end Israelis 
batlte for control cal highway 

Israelis attack] 
Syrian missiles) 



By John Uoyd, Labour Editor 


SYJRIA 

DAMASCUS 


Isyrians withdraw as IsraeSs advance 
tto Bekaa Valley towards Zahle 


teRABL/ 


teraafis reinforce 

Golan 

o 


A NATIONAL Tail strike from 
June 28 has been called by the 
National Union of Radwaymeai, 
the biggest raid union. 

The NUR executive voted 
yesterday by 17 votes to six for 
an all out strike in protest 
against a 5 per cent wage offer 
made last week by Sir Peter 
Parker, the British Wait chain* 

manj 


would help to prevent total war- 
fare between Israeli and 
Syrian troops, . 

It was also believed that 
Israel was seeking a way to 
enable Mr Bashir Jamayel, 
commander of the Christian 
Phalangist forces winch control 
much of north-western Lebanon 
above Beirut, to link with 
Major Saad Haddad, com- 
mander of tiie Israeli-hacked 


Christian militia in southern 
Lebanon. 


Israel confirmed yesterday 
that it had captured Damour. 
a port only eight miles south 
of Beirut and 50 miles north 
of the Israeli border. It claimed 
to be in control of all the coast 
between Damour and the 
border, 

Hiddl&East details, Page 4 


Shock waves of warfare on the road to Damascus 


BY ANTHONY McDERMOTT IN AARAIYA, LEBANON 


THE SHOCK of the missile 
as it hit the plane was con- 
siderable, even within the 
taxi winding up the steep 
road above Beirut towards 
the Bekaa valley and ulti- 
mately Damascus. 

To my left, above a wooded 
valley dotted with houses, a 
jet was falling with flames 
flaring off its wings. An 
orange and white parachute 
floated down behind it. 

On the ground a gendarme 
explained: “There were two 
planes, -one chasing the other. 
The one in front was hit” . 


Half a mile up the road, 
smoke was rising from a patch 
in the trees near a red-roofed 
house, where the wreckage 
had come down. People were 
leaning over the parapet of 
the road staring down. “It 
was Israeli, it was Israeli,” 
said one — and be was almost 
certainly wrong. Then the 
militia arrived, waving guns 
and we all left rapidly. 

Further up the road, some 
nine miles short of Shtanra, 
shells started to come in with 
increasing frequency on the 
area of Dahr el-Baldar, where 


Syria has apparently concen- 
trated some troops. From 
there, clouds of grey dost and 
smoke were rising, close to 
the highest spot on the road 
to Damascus before It begins 
its descent Into the beautiful 
orchards and fields of the 
Bekaa Valley abont a mile 
away. Shells fell initially 
every five minutes and then 
at shorter intervals. Syrian 
tanks were positioned by the 
road and Syrian, Lebanese 
and Palestinian checkpoints 
were everywhere in between. 

The fighting in Lebanon 


has thrown up some oddities. 
Galerie Semaan was once a 
crossing point into Beirut, but 
was used only when there was 
a convincing quorum of other 
cars for fear of snipers shoot- 
ing from the high rise build- 
ings and shrapnel - scarred 
horses. Now it has a police- 
man controlling the traffic. 
Moslem West Beirut and 
Christian East Beirut are not 
shelling each other for the 
moment. 

Yesterday, however, began 
normally enoutfi with Israeli 
jets flying over Beirut and 


attracting somewhat belated 
anti-aircraft fire. 

It is dear at the same time 
that Beirut is descending to 
yet another level of collapse. 
The . luxury hotels are long 
gone, victims of the civil war. 
Bnt In the centre of the 
capital and at the Bonlangerie 
Matte in the mountains, 
queues for bread are growing. 

The lines at petrol stations 
have been lengthening since 
the Tahrani refinery near Tyre 
was hit The destruction of a 
power' station at Jiyye, south 

C ontinue d on Back Page 


Bombings bring setback to Stanley attack 


BY BUDGET BLOOM AND ANDREW. .WHITLEY 


BRITAIN'S last-minute prepara- 
tions for sealing off tiie Argen- 
tine-garrison at- Port Stanley 
have received a setback with 
the Argentine bombing of key 
landing craft 15 miles, from the 
Faiklands capital 
. The bombing was announced 
late , on Tuesday night but as 
fuller details became available 
last: night- it. was clear that the 
attack had had a more devastat- 
ing impact than at first thought 

The -Defence. Ministry could 
not confirm details last night 
but casualties on two logistic 
landing ships which were badly 
damaged and burning -uncon- 
trollably from 'Argentine fire. 


werei higher than first reports 
had suggested “ \ 

Details of the action came 
in a dispatch from Michael 
Nicholson of ITN, who watched 
400 yards- away as* the Sir Gala- 
had and Sir Tristan were 
bombed by Skyfaawk aircraft in 
the narrow estuary at Fitzroy, 
East Falkland. 


The ships had been dis- 
embarking men of the 5th 
Brigade, it is believed mainly 
Scots and Welsh Guards, 
intended to reinforce the troops 
entrenched a few miles from 
Port Stanley. 

“The attack happened so fast 
there wasn’t even time to think 


FALKLANDS WEATHER: 
Partly cloudy. * SW winds 
force 5-6, 20 ft waves. Temps 
up to low 30s. Excellent 
visibility. OUTLOOK: Mostly 
cloudy with westerly winds 
force 7-8 and 25 ft waves. 
Occasional snow flurries with 
reduced visibility. Temps in 
30s. 


of finding cover, and as ships 
were hit, men. aboard didn’t 
even have time to put on their 
anti-burn absestos bead masks 
and gloves to save them from 
the heat,” Nicholson said. “As 
the bombs exploded many were 


brought asore with burns.'” 

“Sir Galahad had anchored 
on5y a few hours before, and 
the men were waiting for land- 
ing craft to come and get them. 
One hour later and most of 
the men would have been safely 
ashore in their trenches.” - 

Nicholson's report came 
nearly 24 hours after the 
Defence Ministry announced 
Sate on, Tuesday that a frigate 
and the two landing ships were 
attacked and damaged by Arg- 
entine aircraft. 

The Ministry said that at 
least six; and possibly 11 Arg- 
entine aircraft were shot down. 

• There was no further news 
at tbe time of writing of tbe 


plight of the Plymouth, a Type 
12 frigate. 

Last night the Defence Min- 
istry, which cleared Nicholson’s 
report: for broadcasting »t about 
5 pm, was still unable to give 
the number of casualties or 
other details of tiie Fitzroy 
action. 


The Nicholson dispatch 
makes clear that the troops 
ashore hod not yet been able 
to establish effective air 
defences, believed to be the 
Continued on Back Page 
Faiklands crisis. Page 3; 
Parliament, Page 12; Libya 
sends Argentina arms. Back 
Pag© 


The majority on the execu- 
tive comfortably exceeds the 
two-thirds majority required 
for a strike call and represents 
a defeat, for Mr Sidney 
Weighell. the union’s general 
secretary. 

Mr Weighell said after the 
meeting: “1 feel let down by 
the BR board, 1 feel let d«wn 
by the Government. We have 
delivered on all the items we 
have been asked for. We have 
been beating our beads against 
a brick wall. I understand the 
feelings of the executive.” 

Mr Weighbell had spoken In 
favour of continuing talks with 
the board but tins was decisively 
rejected by his executive. He 
can now only return to talks 
with their permission. 

Sir Peter’s offer to the rail- 
waymen is dependent upon 
acceptance of the full BR pro- 
ductivity package, which 
includes flexible rostering, 
single manning of goods and. 
passenger trains, cuts in station 
staff, a restructuring of grades 
and other efficiency measures. 

The NUR’s derision ranges 
the traditionally moderate 
union beside Aslef, the train 
drivers’ union, which remains 
opposed to flexible zvtering 
and has also rejected the wage 
offer. 

The NUR is to approach 
Aslef and the white colter 
union, TSSA. to support the all- 
out strike calL 

It is also to approach its 
partners in the tripJe alliance 
— the maneworkers and the 
steelworkers — for support mid 
possible sympathetic action. 

Referring to Aslefs refusal 
to implement flexible rostering 
— -which the NUR has accepted 
at national level— Mr Weighed! 
sand: “I Tesent it that 90 per 
cent of tiie railway community 
axe being penalised by the 
failure of a small majority to 
honour their obligations.” 


E in New York 



Sl.7785-7800 81.7B75-79SO 
o . 26 - 0 . 31 pm o J53-0 jta pm 
1.05-1.10 pm 0.94-0.99 pm 
3.50- 3.60 pm 3 JBB-3J5B pm 


U.S. bank in Hoare Govett bid 


BY>OHN MOORE IN LONDON AND DAVID LASCHJJES IN NEW YORK 


• TEACHERS' UNION called 
the Government’s Youth Train- 
ing Scheme a “ cynical attempt 
to reduce the unemployment 
figures before tiie next general 
election.” Page 11- 


• DEPARTMENT of Industry 
is Kkely to rertart-.-its e m ai l 
■engineering .companies invest- 
ment scheme /later ' this. year. 
•Page TO'-. • 


SECURITY PACIFIC Corpora- 
tion, the iecond largest bank 
in California': and the 10th 
biggest bank in the .US* is 
planning to acquire a 29.9- per 
cent stake in. Goare Govett, a 
leading UK. stockbroker. 

The move is the first in what 
are likely to be major changes 
in the structure of the UK 
securities market. . 

Security Pacific is tiie first 
group to take . advantage of 
recently relaxed rules designed 
to allow members to raise more 
capital from outside interests. 
Outside investors are now 
allowed to hold up to 294 per 
cent of stoekbroking and stock- 
jobbing firms. 

Under the previous iwfes out- 
side investors had been 
allowed to take only a 10 per 
cent holding, 

Mr Richard West managing 
director of Hoare Govett, said 
yesterday: “We are enthusiastic 
about being the first to take 
advantage of the new rules. The 
move will, steadily -grow as a 
number of brokers look at this 
route for new capital.” 

In Los Angeles Mr Frank 
Cahouet, vice^hafrman and 
chief financial officer of 


Security Pacific, said: “ We want 
to be able to provide a breadth 
of financial services both 
domestically and inter- 
nationally.” 

He stressed that the deal was 
“an investment” which would 
respect ' Hoare ' Govett's 
independence. 

So far none of the financial 
details have emerged and 
negotiations are proceeding. 
The deal is subject to the 
approval of the Stock Exchange 
and other regulatory authorities. 

The Stock Exchange will be 
considering its new outside 
investment rules on Tuesday at 
a council meeting when it is 
expected that the wordings of 
the riflings will be agreed. The 
Hoare Govett deal as expected 
to be discussed at that meeting. 

The Stock Exchange's deter- 
mined that any- new share- 
holdings arranged with outside 
investors should oitiy be re- 
garded as an investment- by 
bote parties. The investor 
should have no dap-tentey 
influence on the m anagement 

According to Mr Graham 
Ross-RuaseH, chairman of' the 
Stock Exchange’s membership 
committee: “As long as we are 


a self-regulatory body, then we 
have got to have control over 
our member firms.” 


The Stock Exchange is con- 
sidering a framework of rules 
which outside investors will 
have to observe and it may 
revise its rules following the 
Hoare Govett deal. 

Hoare .Govett, which has acted 
as London brpkers for Security 
Pacific for between two and 
three years, said it bad been in 
talks with Security Pacific for 
six months. 

The stockbroker said it did 
not need new capital, but Had 
plans to develojj its inter- 
national operations. £o the 
autumn it is starting its first 
venture in the U.S., opening 
an office in New York. 

Hoare Govett said if 1 saw 
Security Pacific’s move as part 
of an overall plan to develop the 
bank’s European financial ser- 
vices operation. 

Security Pacific said it w as 
interested in Hoare Govetfs 
Asian business because it sees 
opportunities in the Far East 
and the Pacific basin. Hoare 1 
Govett has offices in Hong Kong, 
Singapore and Tokyo. 

Lex, Baek Page 


It depends on 
how much you need 
to remember. 


CONTENTS 


Steel Imports: why the U.S. is fightmg 

back 22. 

Economic viewpoint: what the Summit 

left to do 23 

Management detergent maker calls a 

halt to sexist ads 20 

Business law: now a company may buy 
■ its shares : 19 


Technology: Italian data networks 32 




i /* ... ' • 

~ + M * * . * • • 


Editorial comment: Insolvency law; 
Chad 22 


Lombard: the case’ for fairer voting 23 

. Surveys: Basque Country ' 13-18 

Beatrice Oilfield ... — . 33-35 


Our 121 typewriter 
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Amtrieni Mwa _ ' 8 

Appomtanwits 28 

Art* ... 21 

Baca RBtac 32 

Commedltia* — 27 

Companies UK % 25.28 
Crossword' 21 

Entertain. QuWo _. 21 

European (tows 2 

European Options 28 

Euromaifcete 27 

FT Actuaries 5— * « 

Foreign E acrian gas 44 


. Gold Market* ...... 

inti. Corns. 28,29,1 
Jobs Column — - 
leader Page y 

. Letters 

Lax 

Lombard - 

London Options •— 
Management ...... 

Man ft Matters — 

- Mining — . 

Money Mariwt* 

Overseas News ... 


Parliament 12 

Racing - 19 

Share Information 48, 47 
Stock Markets: 

London ■ 43 

Wall Street 42 

Bourses ............ 42 

Technology 32 

TV and. Radio 19 

UK Nows: 

. Oefwral ^_8,iai1 
. Labour ............ ' 12 


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Financial Times Thursday June 10 1982 


EUROPEAN NEWS 


France planning 
£2.3bn injection 


for steel industry 


Nate seeks 
detente but 
keeps up 
its guard 


Bleak prospects for W. European jobless 


’ . if 

Sfel f 

' p 


. li 


BY MAX WILKINSON, ECONOMICS CORRESPONDENT 


By Jonathan ■Carr m Bonn 


BY TERRY OODSWORTH IN PARIS 


FRANCE IS planning to spend 
about FFr 26bn (£2.3bn) on a 
further four-year reconstruction 
of the national steel industry 
aimed at eradicating losses, by 
1986. 

The project, announced after 
yesterday's Cabinet meeting, is 
the first sectoral industrial plan 
to emerge since the recent 
nationalisation programme em- 
bracing the steel industry. 

It suggests that a significant 
proportion of the investment 
being set aside for state 
industry will be devoted to the 
steel companies, which lost 
around FFr 61m last year. 

Precise details of the 
Government plan, part of whiah 
will depend on discussions 
between employers and unions, 
and which is expected <to involve 
substantial redundancies, were 
not given yesterday.- But the 
global FFr 2t>bn was broken 
down broadly into three cate- 
gories. 

First, investment in moderni- 
sation will amount to 
FFr 17.5bn. Of this. FFr 2bn 
will depend on talks between 
the two sides of industry on the 
specific allocation o€ the funds. 
The proportion of grants and 
loans within this funding was 
not made clear last night, but 
the figure for investment falls 
close to the FFr 2QI>n which has 
been demanded 'by the industry. 

Secondly, the Government is 
to advance a little over FFr 3bn 
to the subsidiaries of Usinor 
and Sacilor, the two big steel 
companies, to help with their 
diversification plans. Some of 
this will go to industrial con- 
version projects in the steel 


regions, 

Tliirdly, equity injections of 
FFr 2.4bn this year and a 
further FFr 3.5bn in 1983 are 
planned for Usinor and Sacilor 
with the aim of reducing their 
crippling financial charges. 

Although the Government 
presented this plan as a four- 
year programme yesterday, it 
is expected that spending in 
modernisation will have been 
committed by the end of 1985, 
thus meeting the deadline set 
by ihe EEC on European steel 
industry subsidies. 

On capacity, the aim is to , 
have plant capable of producing 
around 24m tonnes in 1986. i 
This suggests a reduction in 
capacity, since unofficial estd-. 
mates put theoretical current 
production capabilities - at 
around 29m tonnes. But the 
industry has been producing 
between 21m and 23m tonnes 
during the last few years. 

The announcement also left 
open the equally tricky question 
of redundancies. No-one con- 
nected with the steel industry 
hides the fact that at least 
10.000 to 12,000 more jobs need 
to be shed to attain ideal pro- 
ductivity levels. But this will 
be a bitter pill for the unions 
after the 30,000 jobs that have 
been axed since the last bag 
reorganisation in 1978. 

To make this pill more palat- 
able. the Government is clearly 
banking on its increased com- 
mitment to the industry. In- 
vestment tied to the previous 
project amounted to around 
FFr 13.8bo. 


Van Agt announces Dutch 
elections for September 8 


THE HAGUE — Mr Dries 
van Agt, the Dutch Prime 
Minister, has announced that 
general elections will be held 
on September 8, several weeks 
earlier than be would have 
liked. 

Mr van Agt had hoped to 
hold the elections after Sep- 
tember 21. the day the new 
parliamentary year begins, as 


under Dutch electoral law a 
cabinet formed from elections 
after that date would have held 
office for an. extra year. 

During a parliamentary 
debate on Tuesday on his 
interim government's - policy 
programme, Mr van Agt said it 
it was clear that most members 
of parliament favoured an 
earlier date. 

Reuter 


Hoechst 


THE WESTERN allies will 

- underline today both their 
readiness to seek “ genuine 
detente" through dialogue 
with the East and their 
resolve to keep up their 
military guard. 

This “. double Strategy” 
emerges In an 'Important 
i declaration to be Issued at the 
! summit meeting in 'Bonn of 
the member states' of the 
North Atlantic Treaty Organi- 
sation (Nato). ■ 

It is understood to- fulfil 
both the wishes of European 
countries — notably -West 
Germany — not to break con- 
tacts with the- East despite 
the Polish crisis, and those of 
the U.S., above all, for a 
strong military stance towards 
Moscow. 

As a sign of the differences 
within the . alliance which 
preceded the Bonn summit, 
two other statements as well 

- as the main declaration wiU 
be issued, too. 

One, to he signed by all 16 
member states — that is. 
Including .new-member Spain 
and France,, which is not a 
part of Nato *s. military com- 
mand structure — will stress 
Western efforts for arms con- 
trol and disarmament. 

The other statement, which 
will not be signed by France, 
Involves the efforts of the 
alliance for an integrated 
defeace. It ts understood to 
urge that further improve- 
ment in Western forces is 
needed, despite progress since 
the last summit- in 1978. 

Originally, it was Intended, 
to include much of the detail 
on u integrated defence ” in 
the main declaration, hot 
France, for one. indicated to 
the U.S. that., it could not 
agree to that 

If was agreed, therefore, to 
put much of the specific de- 
fence material' in a second 
document '.A third then 
emerged on arms control as a 
“ balancing item ” at the wish 
of the European members. 

The main declaration under- 
lines that Nato is -a defen- 
sive organisation, that It does 
not seek military superiority 
and that its aim remains a 
stable balance at the lowest 
negotiable level ' of forces. 

It also stresses that Nato 
seeks a substantial and bal- 
anced East-West relationship 
with the' aim of “ genuine de- 
tente." The word u genuine ”• 
being' Inserted at U-& insis- 
tence. 

To break up this point fur- 
ther, the declaration says the 
allies will continue their 
efforts, as far as Soviet be-’ 
haviour allows, fora construc- 
tive East-West • relationship 
based- on dialogue, negotia- 
tion and co-operation of bene- 
fit to both sides. 


THE SCALE of unemployment 
in Western Europe in five 
years’ time could be as bad as 
in the depths of the pre-war 
depression, according to a joint 
study by institutes in six major; 
countries, published today. 


The study, co-ordinated by 
tiie Economist Intelligence Unit, 
suggests that unemployment in 
the six countries will increase 
steadily to more than llm 
people by 1987, representing 
104 Per cent of the total work- 
force. * 


The unit has co-ordinated 
forecasts for the UK West 
Germany. France, Italy, the 
Netherlands and Belgium by 
setting common assumptions 
and comparing data for fore- 
casting institutions. 


' One of the most disturbing 
conclusions is that even if the 
countries adopted a concerted 
programme of reflation, -unem- 
ployment would neverthless con- 


tinue to rise, albeit at a dower 
rate. * ’ 

The ■ main forecast suggests 
an average annual growth rate 
of about 2$ per cent for the 
six countries between 1981 mid 
1937, with -inflation falling to 
an annual rate of about 7 per 
cent by the end of the period. 
However, ' the total current 
■ account deficit on the six's 
balance of payments could rise 
from about $12bn in 1981 to 
nearly JITbn in 1987. 

These results assume that 
existing policies will be broadly 
continued. An alternative out- 
look has been produced on the 
assumption that . the UK will 
apply a stimulus equivalent to 
about 2 per cent of output next 
year and that France, West 
Germany and the Netherlands 
apply a fiscal injection of about 
1 per cent of output with a 2 
percentage point cut in interest 
-rates in the same year. 

It ' is assumed that more 
expansionary policies- in Italy 


SIX MAJOR EUROPEAN COUNTRIES: ECONOMIC PROSPECTS 

Output ' ■ Unemployment 

(annual %change) Inflation (% of workforce) 


1932 


7 A 

■ - M 

9-1 

1983 


2 A 

. 90 

• . ■ :>A 

1984 

- 

;23 

93 ■ 

93 

1985 


23 ' 

8.1 

1 U- 

1986 


23 

73 

* 10 J 

1987 

: * r 

2A 

7.1 • 

: .JM- 


Soares: Economist Intotfigooco Unit 


and Belgium would be very 
unlikely. The consequence of 
generally easier policies in 
Europe would be to reduce un- 
employment by about lm or 
1 per cent of the workforce 
below the level it would reach, 
in 1987 if policies remain as at. 
present. 

It is estimated that a small 
penalty would be paid in terms 
of inflation, which Would be 


about i percentage point higher 
in 1987 than irwould otherwise 
be. The growth in output would 
be stimulated to an annual rate 
of about 3 per cent in the next 
three years compared with 
about 2 per cent for the period 
on unchanged policies. 

Generally, forecasters believe 
economic progress in Europe 
-will be restrained by adverse 
external factors, 1 whatever poli- 


■ des are pursued. -Xh&'iEuture 
. pressures include: 

#- slowly rising, real energy 
prices; 

• competition from the lLS. and 
..Japan in high technology; .. 

• • competition from Japan-, in 
traditional industrial goods in- 
cluding steel, d&pbuflding, cars 
and other durables; ' 

• competition from the newly-' 
industrialised countries in fee 
labour-intensive industries. 

The EIU -report says: “Witiiin 
Europe, countries are on3y very 
slowly coming 4b terms wife a 
■world in wfcScfa productivity 
.growth -is now lower, terms of 
trade developments less 
favourable- and- hence-, the; pros- 
pects of Teal per capita income 
growth much more subdued - 
than earlier trends had led' the 
population to expect" . 

The. major ’European Econo-' 
mles 1982-87 . Economist Intelli- 
gence Unit Special Report No 
127,. 27, St.'Jcunes’i^Pidce^liniP 
<UmJSWl,(£120)j 


Commission warns on falling investment 


BY JOHN WYLES IN BRUSSELS 


FIXED CAPITAL investment is 
continuing to fall in real terms 
in a majority' of EEC member 
states and governments must 
mount an urgent attack on' the 
problem if Europe’s economic 
performance is not to fall even 
I further behind that of the UJS. 

I and Japan. 

This is the broad conclusion 
of a sombre assessment pro- 
duced by the European Commis- 
sion for the Community summit 
in Brussels at the end of this 
month. At their meeting at the 
end of March, heads of govern- 
ment agreed on the need to 
work for an investment 
recovery and called on the Com- 
mission to make any proposals 
it deemed usefuL 

It appears to see only a 
limited role for Community- 


level action and it puts the 
main responsibility for action 
on national governments. In 
particular, it urges an improve- ’ 
mant in the “ quality ” of public 
expenditure through fiscal and 
financial incentives to invest- 
ment and through structural 
policies- for streamlining indus- 
tries and strengthening training 
and research and development 
The Commission criticises 
governments for attacking their 
spending deficits through reduc- 
tions in public investment 
rather ■ than consumption. 
General government gross 
capital formation represented 
4.1 per cent of gross domestic 
product in 1970, But this had 
fallen to 3.1 per cent in 1981. 
while total current expenditure 
had climbed from 33 per cent 


to 45 per cent of GDP in the 
same period. 

The report calls for a re- 
examination of -the effectiveness 
of a variety of fiscal and 
financial incentives * to 

investment in fee EEC. 
The Commission says feat it has 
begivi an analysis of invest- 
ment incentives which will try 
to explain why savings are not 
adequately channelled into cor- 
porate investment.. 

It impides that public deficits 
are partly to Marne but also 
points The finger at insufficient 
levels of real after-tax yield on 
corporate securities end struc- 
tural weaknesses such as im- 
perfect financial markets. 

The Commission is forecast- 
ing a fall from 20.2 per cent in 
1981 to 19.7 per cent this year 


^ . 
EEC gross fixed capital forma- 
tion as a proportion, of . GDP. 
The equivalent figures for the 
U.S. have been slightly lower all 
through the 1970s but without 
fee same declining trend. Since 
1976, investment in Japan has 
been virtually static at around 
31 per cent of GDP. 

The EEC’s deteriorating invest- 
ment performance, argues the 
Commission, is part of fee ex- 
planation for its declining share 
in world markets for manufac- 
tured produo ts between 1973 
and., 1980, It is particularly con- 
cerned about fee fact feat the 
U.S. and Japan increased feeir 
share of technology intensive 
office and telecommunications 
equipment by 2.2 per cent and 
IB per cent, while the EEC's 
declined by 1 per cent 


W. German 
coal plant 
goes ahead 


By Kevin Done in Frankfurt 


CBI condemns worker consultation plans 


BY LARRY KUNKXR W BRUSSELS 


EUROPEAN COMMUNITY 
proposals for increased worker 
participation in the manage- 
ment of Industry and for 
greater company consultation 
with employees on a broad 
range of policy decisions were 
strongly criticised yesterday by 
a high-level team from the Con- 
federation of British Industry. 
They were visiting Brussels for 
talks with the European 
Commission. 

Mr John Raisman, chairman . 
of the CBI’s European Commit- 1 
tee, said that fee “Vredeliog 
proposal" that employees be 
consulted before important 


policy decisions are taken was 
“ totally misguided " and that 
the so-called Fifth Directive on 
worker participation in 

management was "totally un- 
workable." 

While emphasising that a 
significant aim of fee talks in 
Brussels was to reassure the 
Commission ' about British 
industry's support for the 
UK’s fullest participation in the 
Community, the eight-man CBI 
team, also wanted to make clear 
that '.there were .several areas 
of serious concern. 

• Following talks wife fee five 
Commissioners responsible for 


economic policy, internal mar 1 
keting. Community enlargement,, 
foreign policy and budgetary 
affairs, Mr Raisman, told a news 
conference that the Vredeling 
and Fifth Directive proposals 
“as they now stand" held con- 
siderable dangers for the effec- 
tiveness of industry. 

He hoped that the Commis- 
sion, fee European Parliament 
and, eventually, fee member- 
state governments would take 
great care before approving fee 
measures. 

On the other hand, the Fifth 
Directive, if properly drafted,' 
. could open up a wide range of 


welcome options and could be 
a big step towards recognising 
officially fee differences in social 
structures in fee member-states. 

The Fifth Diredive, winch 
was first proposed 10 years 
ago, concerns primarily an 
attempt to give legal protec- 
tion to the rights of emjAoyers, 
employees and shareholders. 
It proposes several options for 
worker participation in manage- 
ment, including two-tier .and 
unitary boards with up to 50 
per cent worker-directors or 
co-opted: representatives - from 
outride fee company. 


Comecon attacks West’s 4 economic blockade 


Payment of Dividend 


NOTICE IS GIVEN to shareholders that following a resolution passed at 
Ihe Annual General Meeting of shareholders held on 8th June* 7982 a 
dividend for the year ended 31st December, 7981 of 74% on the nominal 
value of the shares will be paid as from Sth June, 7982 against delivery 
of Coupon No. 43 or lodgement of London Deposit Certificates for 
marking Square No. 34. 

Tne dividend of 14% will besubjeetto German Capital YieldsTaxof 25%. 

Coupons and London Deposit Certificates may bo presented as from 
9th June, 1932 to 

& G. Warburg & Co. LtcL, Coupon Department, 
SL Albans House, Goldsmith Street; 

London, EC2P2DL 

from whom appropriate claim forms can be obtained. 

The dividend will be paid at fee rate of exchange ruling on the day of 
payment. 

Payments fn respect of London Deposit Certificates wiR be made at the 
rate of exchange ruling on the day of receipt of dividend on fee under- 
lying shares deposited in Germany. 

United Kingdom income Tax vriil be deducted at the rate of 15% unless 
claims are accompanied by an affidavit. 

German Capital Yields Tax deducted in excess of 15% is recoverable by 
United Kingdom residents, and fee Company’s United Kingdom Paying 
Agent will, upon request, provide holders with the appropriate forms foe 
such recovery. 

Frankfurt am Main, June 1982 


Hoechst AktiengeseHscftaft 


Warsaw Pact 
offer on 
troop reduction 

VIENNA — The Warsaw Pact 
said yesterday it was ready to 
test Western proposals for 
unblocking stalled negotia- 
tions here on reducing both 
sides’ armed forces in Central 
Europe. 

■ Herr Andre Wieland. fee 
East German ambassador, 
told the 308th plenary session 
of the 19-nation talks feat fee 
Communist alliance was pre- 
pared to take up a Nato sug- 
gestion that they draft writ-, 
ten comparisons' of their 
positions on issues under 
negotiation. But he added 
that this would have to be 
a purposeful process, aimed 
at reaching mutually accept- 
able solutions. 

■ He was responding to a 
Nato proposal last April for a 
joint “stocktaking" to help 
clarify areas . of agreement 
and disagreement and to 
assess results achieved so far 
in the Vienna talks, now in 
their ninth year. 

A Nato spokesman said fee 
West welcomed fee Com- 
munist reply and would study 
it carefully. 

Reuter 


BY DAVID BUCHAN M BUDAPEST 


EASTERN EUROPE js showing 
some surprise and dismay to 
find itself included In the new 
Western credit restraint policy 
announced at the Versailles 
summit. At this wek's Comecon 
summit here, all Communist 
bloc leaders have joined fee 
Soviet Union in condemning the 
West’s hew 44 economic 
blockade." 

Referring to the earlier 
specific Nato sanctions against 
his military regime. General 
Wojtiech Jaruzelski, Poland’s 
leader, delivered the. hardest- 
hitting speech. “Th eenemy 
is still attempting to halt 
stabilisation and rouse dis- 
content” in Polanwd, he said. 

“An economic blockade has 
1 ben irnposd on Poland which 
hinders the settlement of prob- 
lems and delays the lifting of 
fee state of emergency." 

Hungary, in particular, is 
anxious about credit restraints 
because, thanks partly to its 
more successful economic man- 
agement and to its entry last 
month into the IMF it believes 
It stands first in line to receive 
any new credits from fee West 

However, Mr Ferenc Eszter- 
galyos, head of the Western 
Department of the Hungarian 
Foreign Ministry, said Budapest 
takes some heart from the 


usSp. 

tear 





$$$$& ' ■ 

ments, but like other East 
European countries, . Hungary 

fears feat Western commercial 


banks may take feeir Mine from 


feeir governments. - • 

■ 

Regular Comecon ministerial 


sessions are noted for fee -hum- 

‘ drum nature of. feeir. central 


- • 5 v* 4 -. tti... J 

ii'-" 1 ;- 5 . Z<£-\ 



Gen Jaruzelski (left): “Enemy Is trying to rouse discontent" 
Mr Lazar (right): “Much room for improvement" 


wording of fee Versailles state- 
ment This calls for “ a prudent 
and diversified” • Western 
aproach to East bloc lending 
and suggests to the Hungarians 
that an exception might "be 
made for them. 

President Francois Mitterrand 
of France, is due to visit Buda- 
pest next month and can expect 


to be pressed- by bis Hungarian 
hosts for clarification. ' 

The Versailles ' decision 
covers officially - guaranteed 
loans by Western Governments. 
These amounted to $22bn or 27 
per cent of total Comecon. debt 
by last year. Only 2 per cent 
of Hungarian debt is under- 
written by Western Govern- 


work. Tlie only concrete deci- 
sion this week is likely to be a 
protocol on co-operation In 
micro-processors and industrial 
robots, a programme pushed by 
fee Soviet Uni mi in Its desire to 
improve industrial efficiency. • 

But fee new Western credit 
moves _ have -focused - -Com- 
munist leaders' minds , on fee 
shortcomings -of Comecon its el f, 
given the likelihood feat.memr 
ber counties may how be trad- 
ing more with ead fa other. Mr 
Nikolai Tikhonov, fee Soviet 
Prime Minister noted feat last 
year Comecon countries . did as 
much as 55 per cent of . feeir 
total trade wife each other: 

The frankest complaint, came 
from Mr Gyorgy Lazar, ; the 
Hungarian Prime Minister. 
Some Comecon countries, be 
said, were duplicating each 
other’s efforts and failing to 
specialise efficiently like Hun- 
gary. He also said fee Comecon 
record in trade deliveries and 
contract fulfilment had much 
too m for improvement. 


> RUHRKOHLE. West Germany's 

> dominant coal producer;' and. - 
i Ruhndhemie, a subsidiary . of 

Hoechst, fee country's largest ■ 

- chemicals group, atro- pressing 
: ahead with plans to build the 

- country’s first commercial-scale 

i coal gasification plant.- - - 

Shell recently announced fee ; 
’. ^abandonment of its scheme to J 
-■ build a DM 670m (£157m) gasi- 
* fication plant in WilheLmstaaven ; - 
' that would have processed - 
■ around ’ 324,000 tonnes of : 

! imported coal a year into 
synthesis gas as a raw material 
for methanol. > 

The plans, have been passed 
iby Rahritohle’s- supervisory - 
board,: despite growing soepti- • 
clsm in Western Europe and: 
fee U.S. about fee commercial 
viability of coal conversion 
plants.. 

The Ruhrkole / Ruhrrihemie - 
plant is still dependent on fee , 
granting of : state "■ subsidies. • 
These have been applied - for 
and Bohn made dear last year * 
it is pi aiming to devote- up to v 
DM 2bn (£470m) over 1982-1985 
to promote coal .conversion 
technology. ' ’ - • • - 

; In special cases, it said it 
would be ready: to fund .up t 1 o\- 
50 per cent of the capital invest- 
meat costs. In. addition, it would 
pay a subsidy pf tip to DM 60 ' 
(£14X j>er,tonne •if ^dorm&tlc 

Sr 

; - built : at 

th e Ruhr xeginh: mu? 'sfcfewkbe 
ready tor ’’ 

1986. It is; plaaped. toT pqwfess ; 
250.000 .firaeff'bf NiJoc^'fpro- 
duced. ■ coal a . year iSntb;f32ftm 
cubic metres- ti£ synthesis gas 
and 80m. cubic feefrey of hydro- /. 
gen. — The .iprtttiess.- wHIVaiso - 
provide ' arocmd dSO.OOO, to&aes } 
a: year of steam,,' wfadcfti w£ELt*e V 
used as an energy sbuiiee J>y i 
Itifeichemie., ' 
Cost vis estimated arodxtd -. 
DM 220m f£5I«n)\ Gn fee b^js i 
-of -fee, coal subsidy. fee-.stjrte' ; 
vdHr face payments* of rixpvko > 
DM 15m. (£3.5m) a year & fcup- .. 
porting running costs of iflte. 
plant once prodtictaon^'is- 
'started. ‘ :'£0 • .- 

The synthesis finhrf ifee; - 

plant will tie usea ^teefly ^n , 
site by Huhrchemie for feerjUti*. i 

- au ction of oxo-alcohols anffctto-' 

aldehydes, 'VSnd fee.v^osev 
production" c otip eration ; "be- 

tween fee two . coni^Mde^&s : i. 
clearly played ; - ah' v imporomt * 

I role in supporting, fee rprojectV ' 
commercial vi ability.- - ^ 

. ' The ; derision ro.'.goaTaad . 3 
with fee Ruhrk^tie/5,t^e :. . 

chemie plant for gasifying hardf • . 
coal tneajLs.feav West^Germtay. i 
will have two large comxhercfelT 7 ^ • 
scale coal conversion. . '^ 
under . ~ .ronstroction^-wVtiijbg/ 
modem .technology. . - l- j . 

Last December^ 'Rheinbrattn 
.began construction of; a1=Tft£. 
,600m (£X40m) plans 'jfbivAftp- 
verting around 2m- tonuss-i-® 
year of lignite Into l&hv&Wc 
metres a year of synfeKaaxas.' -* . 
The .first, stage, ^otrtd. bei’tonk.\ 
pleted by 1984 raid fuB pradofe- 
,tion will be reached' in '2®^, 


Romanian economy reaches for ‘unrealistic goals 


BY LESLIE CO LI FT IN BERLIN 





Base Rate 


Bank of Credit and Commerce 
International societe anonyme 

LICENSED DEPOSITTAKER 


ROMANIA’S CRITICAL 

balance of- payments deficit 
could be reversed by as early 
as 1985 if ?3bn in debt due last 
year and this is rescheduled 
soon by Western creditors in 
the near future, according to an 
analysis by DIW. the West 
German Institute of Economic 
Research. But fee report, by 
DIW’s Comecon section, also 
concludes' that there is tittle 
chance of • fee faltering 
Romanian economy Showing 
any marked improvement in fee 
next few years. 


payments on debts of some 
$lbn, but it would necessitate s 
sharp drop of imports' in real 
terms, which would harm pro- 
duction and, in the long tend, 
hurt fee country’s export poten- 
tial. Last year, Romania 
achieved a . trade surplus of 
$300m, but DIW points out feat 
It is unclear what proportion of 
Romania's dollar trade — said to 
make up 73 per cent of total 
trade — was on a clearing basis. 
Such surpluses are not freely 
available' add cannot be.used to 
repay Interest. . 


announces that from 
10th June 1982 its base rate 
is changed 


from 13% to 12J%p.a. 


Western bankers negotiating 
with Romania to reschedule rls 
debts are srudjrtqg economic 
information recently provided 
by Bucharest as a condition for 
an agreement. If the. informa- 
tion is accepted, . Bucharest 
could present a formal request 
for rescheduling to fee banks 
this monfe or next. 


Economic targets 


100 Leaderihall Street London. EC3 A 3AD 


-. The institute aays Romania 
will -continue 4o slash imports 
and increase exports to achieve 
Its goal of a $lbn balance of 
payments surplus. This would 
cover estimated annual interest 


The DIW analysis says 
Romania’s economic targets 
have become increasingly “un- 
reahstic ” and no longer pro- ■ 
vide a basta. to forecast eco- 
nomic development. In 1980, 
planned ;, national ■ income — . 
roughly equal to- gross national 
product- minus services — was to ' 
have risen 8.8 per cent but' 
actually rose 2.5 per cent. Last 
year, it was planned to increase 
7 per cent but rose only 2J per 
cent, the lowest increase, since 


1956. This year, the target is 
for 5.5 per oent economic 
growth. 

Romania’s gross industrial 
production rose by 2.6 per cent 
in 1981, the worst since 1945, 
instead at the goal of 7 per 
cent growth. President Nicolae 
Ceausescu told a Western corre- 
spondent earlier this year that 
net- production had risen 4 per 
'cent last year, prompting a 
West German Comecon expert 
to call this a “virtually impos- 
sible feat, even in -the Balkans.” 
The growth target for gross 
industrial production this, year 
is 4.7 per cent, which DIW 
- regards as “ unlikely." 

' Mr Ceausescu, himself, ' has • 
said on. several recent occasions 
that production figures by 
industrial ministries do not 
always conform with the- actual 
results. Thus, although coal 
output was to have risen to 51m 
tonnes last year It reportedly 
rose to 37m. tonnes and' even 
this figure was cast in doubt by 
the Romanian leader. •• 

The DIW report is pesintistnc 
about this- year's target . for 
industrial output because of fee 


lack of available manpower, 
increased import restrictions 
and the extremely poor supply 
of food. 

Energy, and raw materials 
are fee .economy's Achilles 
heel.. Oil production. last year-; 
stagnated at 1 1.6m tonnes, 
instead of fee 15m tonnes 
planned. , Romania adms to - 
increase its production up -to 
1985 while only marginally 
- boosting consumption of raw 
materials and energy. Reduced 
consumption levels originally " 
set tor 1985 are -to be intro- 
duced by 1983. 

DIW. however, recalls- that 
last year's import restrictions 
on 'raw inarenials and semi- 
manufacturers Influenced pro- 
duction .negatively,. Although 
electricity output last year rose-, 
twice as fast 'as industrial pro- 
duction. regular power cots 
were introduced. The Institute 
concludes that if the restric- 
tions on. materials consumption . 
are maintained then industrial 
production wall rise only slowly. 

As an agricultural nation in 
transition, through an agro- 
industrial one, Romania has run. 


Into serious problems with its 
farming sector after a high 5 
per cent agricultural growth in 
the five year plan to 1980. 

■ DIW says that, instead of pro- 
riding a large export surplus to 
finance -raw materials imports 
Romanian agriculture since 
1980 has become a net importer 
if fertiliser and farm equipment 
imports are included. Rationed 
food and long queues have be- . 
come a disincentive to produce 
more. 


Farm problem 


The origin of the farm pro b- 
lem, the institute says, was the 
shift from crop to animal pro- 
duction. Although annual meat 
-constHnption,' at 60 kg per 
capita, is the second lowest in 
Eastern Europe after Bulgaria 
it doubled in the 10 vears to 
1830. This led to a sharp in-' 
crease in fodder use. while fee 
collective , and state farms 
abandoned grazing. 

Wife 20 - farmers per 100 
hectares of land, says DIW 
Romania has the second highest 
overemployment in agriculture 


after- Poland. Despite cohmder- 
able investment 'in : f*trioihs^th6 
pre-hectare harvest results ; are 
among, fee lowest In Comecon, - 
largely because ; o£ orgainsa- 
tlonal- failures. • 

New. measures - hav^ r bto. 
Introduced to increase purijha&e 
.prices -for -crony- 
products- : while ■ .farmtas! 
cqme is to rise by up -to ^ per - 
cent,, depending. «n production 
In creas e. - DIW ^ -ex pljiip s. 
though, that, planned^targfiis 
have agato been, set -.estrereete . 
high, .so that'fariners wUl Jutve 
difficulty in eaxning.' the; i^her 
income-. ..Grain prpduriion^fejs 
year, for example, is td v -rise 20 
per <»nt to 24m/ tpnn^- '.The 
d anger, the report points but.- Is 
that these -“ .unrealistic targets ’’ 
will remove fee iccentive for 

farmers to boost . production, 
leaving agriculture a * problem 

child" of the Romanian 
economy Tn the' future. 7 '^- \ 


FUUUiClAL. . TIMES. pubhaVrtd 1 (UilV 
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V^Mi^v.Tfties ; Thursday; June . 10 1982 

THE FALKLANDS CRISIS 


’ SaqCMnt 


U ifWP^is’CS 


EH — 4imarS&*. - 




BY J1MCT BURNS ^ 


*rfr9 


\ J 7 . , - j- _-~^j ._ “-' id 

^BilffCOTOjCfY .'■’ ’ !: “^3 V 




PROSPECTS' for .Argentina’s 
craeial ‘-cereals traded appear to 
have- improved foUcrwing . the' 
visit: of Sr David ’Lacrore, the; 
THJdea3eecretar5r.for agriculture 
.to. -the Soviet TJmon. _ _ -‘ / .’ 
. Sr Lacroze 6ald on : Wfrj*tirm 
front ‘Moscow earlier this week 
that he was '.confident Argentina 
would secure contracts of at 
least 2m tonnes-from, the. Soviet: 
TJnfcn. - *..*'. 

. According to trade officials In 
Buenos •■ Aires. Argentina has 
about 4.5ni tonnes', of coarse 
grain left for sale from the cur- 
rent 1981-82 harvest. .They .say 
the remaining 2.5m ' tonnes 
could be sold to new. markets, 
even, though this might mean 
Argentina cutting prices. ■ 

Last year, the Soviet Union 
bougie 12m tonnes. of 
Argentine cereals, nearly. 80 per 
cent of the 'country's total grain 
exports. But since the outbreak 
of the Falkiands. crisis, the 
Soviet Union has not signed anv 
new . cereal contacts . . with 
Argentina. . * 

Soviet purchases 'of coarse 
grain and wheat nndpr existing 
contracts have totalled about 
8m tonnes this year. Most of- 
these were signed upder the 
terms of a five-year agreement' 
which' commits the SoviefUnion L 
to buying, at- least '4L5m tonnes' 
of ’Argentine cereals until 19R5. 
Officials say that a potentially 


disastrous shortfaE in Argen^ 
tine cereal -exports’ -has beett 
avoided thanks to the signing of 
jj.ew contracts in -recent weeks: . 

New. sorghum sales . have J 
been made to Venezuela, Spain; 
and Tuvan, while substantial 
volumes! of • soya beans' have 
been sold to Brazil. Iran has ■ 
agreed. . to boy some 1.1m 
tonnes .of Argentine, grails 
Over the next 12 months. 

-Argentina is also hoping to. 
Secure - contracts with China, 
Japan,' Mexico and Saadi . 

■ Arabia* Traders claim that other ; 
buyers -will Teturh to : the ' 
Argentine market once maize 
prices are brought down • to 
more competitive levels. Italy, 
is tipped as a potential - 
customer. 

Argentina does not appear, 
excessively worried - about the 
prospects of losing substantial . 
contracts to the U.S., the’ most 
obvious alternative supplier to 
the Soviet Union. The U.S. has 
indicated . its willingness to; 
increase Sales to the Soviet 
Union. 

It is also said that in spite of 
the Falkiands crisis, there have 
been few problems -for grain 
ships calling at Argentine ports, 
though some ships - which 
normally export oil products 
have refused to dock in recent 
weeks. 


Line up for the land battle for Port Stanley: 
Despite the Argentine bombing of British 
tajMing craft 15 miles from the Falkiands 
.capital, British troops- are' now thought to 
. surround the estimated 6,000-7,000 strong - 
Argentine garrison in Port Stanley. Major 
British troop concentrations are now said 
to be dug In around Mt Kent, the forward 
headquarters, and the Two Sisters ridge, 
with forward patrols probing Argentine 
defences possibly beyond Mt Tumbledown. 
The latest troop movements, an no unced by 
the Mini stry of Defence in London only at 


midnight on Tuesday, involved the reposses- 
sion of Bluff Cove and Fltzroy by "elements” 
of the 5th brigade. Both were apparently 
undefended by the Argentines, who retreated 
some time last week for Port Stanley. 
Capture of the settlements, which Is said 
to have taken place last Friday, gives Britain 
command of the rough tracks leading to 
Stanley. It Is thought that the bridge has 
been repaired by Royal Engineers and that 
possibly 1,000-2,000 men have now gone 
forward to reinforce their colleagues. There 
are 9,000 British troops mi the isla nd s, with 
the majority now near Port Stanley 


Bluff Cove terrain ‘a quagmire 9 


■The following is a . pooled 
despatch by Rickard Savin. 
Press Association, from Bluff 
Cove, East Falkland, dated 
June 6. 

Gale-force winds and driving 
rain, over the weekend impeded 
advancing British troops as they 
tightened the nooses around Port 
Stanley. 

A low mist prevented heli- 
copters bringing in all essential 
supplies to the front-line forces, 
and -already difficult terrain 


was turned into an almost 
impassable quagmire. 

British frigates pounded the 
capital through the night in one 
of the biggest naval bombard- 
ments yet, and the dull thud of 
the explosions oould be heard 
15 miles away. 

The sudden deterioration in 
the weather has become a vital 
factor in the tuning of any 
assault on Port Stanley, which 
until a few days ago seemed 

. imminen t, 


Meanwhile, a picture of life 
in Port Stanley under Argentine 
rule is emerging from settlers 
who recently went to the capital 
by Land-Rover to get essential 
stores. 

The civilians were divided up 
into different accommodation 
and appeared to be allowed to 
walk the streets freely. On one 
occasion the Argentines bad 
lined them up outside the Falk- 
land Islands Company offices, 
searching for militar y infiltra- 
tors. 


Figueiredo 
to decide 
on Vulcan 

By Andrew Whitley 

PRESIDENT Joao Figueiredo 
of Brazil is to decide 
personally on the fate of the 
Royal Air Force Vulcan 
bomber which made an emer- 
gency landing at Rid de 
Janeiro last Thursday. 

The bomber, temporarily 
based on Ascension Island, 
was taking part in operations 
involving the Falkiands war 
when it apparently ran met 
of fuel and was forced to 
land. 

The incident is embarrass- 
ing for both the British and 
Brazilian Governments. Both 
sides recognise that it was a 
genuine accident with no 
other political or military 
undertones, bat the fact that 
the President himself is to 
adjudicate indicates its sensi- 
tivity. 

Britain has formally re- 
quested the return of the 
plane and its five-man crew 
through the . embassy in 
Brasilia. 

To make matters worse for 
London's efforts to prevent 
relations with Argentina's 
neighbours being worsened 
by the war in the Sooth 
Atlantic, a second diplo- 
matic tangle has arisen 
simultaneously. 

Explanations are being 
made to Uruguay over how 
Spare parts for Barrier 
combat aircraft operating 
with the British Task Force 
came to be mixed up with 
medical equipment In a cargo 
which arrived by air at 
Montevideo last weekend. 


The shadow of the Andes tempers war fever in Mendoza 


BY HUGH O’SHAUGHNESSY, RECENTLY IN MENDOZA 


*rriE “WAS FEVER which grips’ 
Buenos Aires, is a few degrees 
lower near the Andes. Mendoza 
is at the foot !of South 
America’s massive - mountain 
chain,- in the shallow of 
Aconcagua, the highest moun- 
tain on the American, continent. 
It commands the road and rail 
approaches to . Chile through, 
the Uspallata Pass. The Chilean 
capital , is a short flight 
' . ' Indeed, this city of .500,000 
people was founded by settlers 
'from the oth er side, of the 
Andes, in 1561. It was governed 
for" centuries from ; Chile, and 
stm instinctively looks west to 
Chile and- the Pacific, -rather 
than south to the distant Falk- 
land and the South;, -Atlantic.. 


. There : are blue, white and 
blue Argentine flags, not least 
in the window: of the local office 
of the Lloyds Bask subsidiary, 
the Bank of London and South 
America, but not in. The abun- 
dance found in Buenos Aires. 
There are also patriotic posters 
and caricatures of Mrs Thatcher 
on the walls of the leafy autumn 
avenues, but more sparse than 
ip the capitaL 

Fewer soldiers from Mendoza 
appear to, have been drafted to 
the Falkiands than from other, 
provinces. The crowds reading 
the latest war news on black- 
board outside the offices of the 
main local 'paper, Los Andes, 
are smaller than in - Buenos 
Aires. 


This is not. to say that the 
Mendocinos have been uninflu- 
enced by decades of indoctrina- 
tion to believe passionately that 
Argentina has a claim to the 
Falkiands. It is just that Chile 
is more immediate. 

Mendoza is very much the 
barometer of Chilean-Argentine 
relations* :When goods were 
scarce and the going rough for 
the Chilean middle-classes dur- 
ing the presidency of Dr Salva- 
dor Allehde from 1970 to 1973, 
Mendoza was filled with Chilean 
shoppers, buying what was un- 
available in Santiago. Many 
monied and professional -people 
came across the border to Men- 
doza to settle and buy land and 
houses.’ • 


Now. with' Chile under Gen 
Pinochet, the poorer Chileans 
seek work they cannot find in 
Chile and take jobs at less than 
the going rate for Argentine 
labourers and farm hands. 

'Apart from Chile, the main 
preoccupation of the Mendo- 
tinos is the slump. At the best 
of times, Mendoza, while much 
richer than most of neighbour- 
ing Chile, has a very precarious 
grip on prosperity. Less than 7 
per ' emit of Site province's 
150,000 sq km is arable and 
much of that depends on arti- 
ficial irrigation from the 
streams and rivers which run 
down into the desert from the 
eternal snows of the Andes. 

There are energy resources 


in the form of oil and natural 
gas, and the state oil company 
YPF has a large refinery at 
Lujan de Cuyo, half an hour’s 
ride south of the city. - 

The conservative and proud 
Mendocinos complain that 
Buenos Aires gives them no 
control over such resources. 
Argentina is supposed to be a 
federal state. In practice, every 
major decision is taken in the 
capital. “We are very keen to 
move back to local autonomy," 
said one prominent local citizen. 

In practical terms, Mendo- 
cinos rely on their farm sector 
for their earnings- Argentina 
is the world's fifth largest wine 
producer and Mendoza is the 
country's most important wine- 


growing province. But wine is 
in the doldrums. 

Local demand is poor, as real 
wages in. Argentina plummet 
and export business is slow. 
European demand for Argentine , 
wine, lower in quality than the 
neighbouring Chilean product, 
was slow even before, the boy- 
cott of Argentine goods and is ; 
now non-existent. 

The olive and fruit growers, 
too, have their troubles. They 
are finding it difficult to sell in 
the Argentine market and even 
more difficult to find foreign 
markets. 

.Recession has hit. Mendoza 
and as Argentina's problems 
grow, there 1 can be little 
prospect -of an early recovery. 


Barclays Bank 

Intercst Rates. 

BASE SATE 

Barclays Bank PLC and^ 

Barclays Bank International Litnitcd 
announce that 'with effect fimn the dose of 
biisrnessaaStiLjii^ 

was decreased from 13% to 12}% 
per armum-T his new rate also applies to 
Barclays Bank Trust Company limited. 

HATES FOR SAVERS 

Bonos Savings andPayplan Accounts. 
Intei^paMwas<iecr^s^fcomi2j% 
to n§% per annum. 

Ordinary Deposit Accounts; 

Interest paid was decreased &aniioi% 
to 9 J% per annum. 


BARCLAYS 


Ktg. Office: St Lombard St, EC^P 3 AH.Rj«. No’* 48839,520880 and 1026167, 


Hill Samuel 

Base Rate 

With effect from the close of 
business on June 10th, 1982 

Hill Samuel’s Base Rate for lending 
will be reduced from 13 per cent to 
12£ per cent per annum. 

Interest payable on the Bank's 
Demand Deposit Accounts will be at 
the rate of 9| per cent per annum. 


Hill Samuel & Co. Limited 

100 V\bod Street London EC2P 2AJ. 
Telephone: 01-6288011 


WHEN YOU KNOW HOW TO LISTEN , 
OPPORTUNITY ONLY HAS TO KNOCK ONCE. 


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OVERSEAS NEWS 


-Financial Times Thai^dajr . June -10., 

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Lebanese car with white ’flags waving drives among the column of Israeli tanks moving north towards Belt Eddine • Villagers in South Lebanon wave at the troops 


London Arab leaders 


suspects 
‘not PLO’ 


By Anatole Kaletsby In 

Washington 

U.S. OFFICIALS believe the 
suspects being held in London 
after the shooting of Ur Shtomo 
Argov, the Israeli Ambassador, 
were not members of the Pales- 
tine Liberation Organisation 
(PLO) but belonged to a Syrian- 
based terrorist group fiercely 
opposed by the PLO leadership, 
it was reported yesterday in 
Washington. 

U.S. officials say there is “no 
doubt" the terrorist suspects 
belong to a group called “Black 
June," which broke away from 
the PLO in 1975. This group 
may now not even be headed by 
a Palestinian and is openly 
hostile to the PLO, according to 
a report in the Washington 
Post. It was earlier stated in 
London that a hit list belonging 
to the suspects contained the 
name of a PLO official. 

Some members of the Reagan 
Administration are concerned 
that the Loudon shooting, which 
provoked Israel’s attack on PLO 
positions in Lebanon was not 
masterminded from Lebanon. 
The Israeli attitude, expressed 
by Mr Mosbe Arens, the ambas- 
sador in Washington, earlier 
this week, is that “it is a well- 
known tactic of the PLO to 
come op with new names, but 
they are all part of the same 
Mafia-type octopus that works 
out of Lebanon.” 

Reginald Dale adds from 
Bonn: The U.S. has expressed 
its concern to Mr Men ahem 
Begin, the Israeli Prime 
Minister, that Israeli forces 
have advanced into south 
Lebanon well beyond that 25 
mile limit originally mentioned 
by the Israeli cabinet, Mr 
Alexander Haig, the U.S. 
Secretary of State, said yester- 
day. 

Mr Haig's comments, made on 
a flight from London to Bonn 
for the Nato summit, appeared 
to imply that the U.S. would 
be less worried about a 25 mile 
advance — despite the fact that 
the U.S. has called for an 
immediate withdrawal of Israeli 
forces. The original objective 
was meant to remove the threat 
of Palestinian artillery, rocket 
and infiltration attacks against 
northern Israel. 

Mr Haig refrained from any 
direct condemnation of Israel’s 
action, and said that the 
miiitaiy movements beyond 25 
miles might be described as 
“tactical and not necessarily 
strategic." He admitted, how- 
ever, that if Israel’s aim was 
to be accomplished, the tinning 
of a withdrawal of its forces 
was going to be difficult 

The problem, he said, was the 
conditions that Israel would 
apply— whether they would be 
acceptable to the U.S. or to toe 
international community and 
whether appropriate conditions 
could be put together quickly. 


pledge support 
for Lebanon 




BAHRAIN — Amid reports 
of Palestinian anger at the 
failure so far of fellow Arabs to 
come to their aid, growing num- 
bers of Arab leaders yesterday 
pledged support for Lebanon 
and the Palestinian resistance 
movement ■ faring Israeli 
invasion. 

Kuwait, following an emer- 
gency Cabinet meeting, declared 
it stood by Lebanon and the 
Palestinians in repelling danger 
and obtaining thedr legitimate 
rights, a Government spokesman 
said. He also said Kuwait would 
attend a special Arab League 
meeting tomorrow, called by 
Lebanon to discuss the invasion. 
The venue of the meeting has 
sot yet been derided. 

In Qatar, the Cabinet ex- 
pressed similar support and said 
complete Arab solidarity was 
the only way to confront Israel 

The Emir of Kuwait, Sheikh 
Jaber a 1- Ahmed al-Sabah and 
heir-apparent, and Prime 
Minister Sheikh Saad ai- 
Ab dull ah al-Sabah followed up 
their Government’s pledge of 
support with personal telephone 
calls to Lebanese President 
Elias Sarkis and Prime Minister 
Shafiq Wazzan. They also spoke 
to Palestinian guerrilla leader 
Yassir Arafat, the spokesman 
said. 

Last night, King Khahd of 
Saudi Arabia sent a telegram of 
support to President Sarkis. 

In the United Arab Emirates 
(UAE). the federal national 
assembly denounced Israel mid 
urged Arabs to overcome their 
discords quickly and face the 
situation. It also asked for aid 
to Lebanon and the Pales- 
tinians. 

Mahmoud Abbas, the member 
of the executive committee of 
the Palestine Liberation Organi- 
sation (PLO), briefed UAE 


officials in Abu Dhabi and 
called for swfft help for the 
Palestinian resistance move- 
ment 

“The Zionist enemy has not 
committed its aggression with- 
out ti»e aid of the United States 
and the West European coun- 
tries," he told the official 
Emirates news agency. 

Arab newspapers reflected 
the bitterness felt over the 
attitude of the superpowers 
towards the invasion. Some 
dailies; notably Al-Riyadb of 
Saudi Arabia, urged a Jihad 
(holy war) and Syrian inter- 
vention. 

KuwaSfs aOrQabas dally asked 
why President Hafez al-Assad of 
Syria, which has 30,000 peace- 
keeeptag moops in Lebanon, 
was waiting in the face of the 
invasion. “The only solution to 
lift the siege on the Palestinian 
and Lebanese fighters Is . . . 
for Syria to enter the war with 
all Its forces," the newspaper 
said. 

The UAE newspaper ri-Wahda 
said that Israel had ambitions 
of expanding aits borders to 
Saudi Arabia end Iraq as a step 
towards Teaching the oil wells 
of the Arabian peninsula. 

The SaucH daily al-Madina 
said it was asta cashing that the 
Soviet Union, which only four 
months ago had pledged to 
defend the Palestinian resis- 
tance and Syria against Israel, 
had not fulfilled its obligations. 

“Most big powers offer the 
Arabs nothing butt words and 
false hopes only to boost their 
own eoooomy and armaments 
trade,” the newspaper said. 

In Cairo, the wMely-read al- 
Akhbar said: . “ When Israel 
launched this barbaric aggres- 
sion on south Lebanon it bad 
the superfluous excuse of the 
shooting of ite ambassador in 
London. 



^ 








to 


troop reserves 


BY PATRICK CQCXBURN IN DAMASCUS 





Palestinians camouflage anti-aircraft gun outride Beirut 

PLO prepares for the worst as Israelis reach Beirut 

Palestinian return worries Jordan 


BY RHAM1 KHOURI IN AMMAN 


ISRAEL’S invasion of Lebanon 
is causing deep apprehension in 
Jordan that pressure will now 
mount on King TTnssein to 
permit the Palestine Liberation 
Organisation (PLO) to resume 
its political presence in the 
country .and its cross-border 
guerrilla operations. 

Jordan has insisted since . it 
drove the PLO guerrillas out in 
1970 that this could only be 
permitted as part of an overall 
Arab strategy. Other countries 
bordering Israel would have to 
allow similar guerrilla opera- 
tions and this would have to be 
linked to a political programme 
aimed at reaching a comprehen- 
sive Middle East peace. 

Mr Mudar Badran, the Prime 
Minister, has announced how- 
ever that Jordan will provide 
facilities for anyone who wishes 
to fight the Israeli attack to 
travel to Lebanon. Medical sup- 
plies and cash donations are 
also being sent to aid the 
resistance in Lebanon. 


The Jordanian authorities 
meanwhile fear that the Israeli 
invasion will sharply increase 
tension among the local Pales- 
tinian population. Emotions ran 
high among the Palestinians in 
1978 when Israel launched its 
last major assault on south 
Lebanon. 

The Palestinians In Jordan, 
who are estimated to form about 
half the population, were parti- 
cularly bitter that the PLO was 
left to fight the invasion single- 
handed and the rest of the Arab 
world offered only words of 
encouragement 

Simon Henderson adds: 
Israeli tanks operating in 
Lebanon have been modified to 
; provide extra protection from 
anti-tank missiles and opposing 
tanks. 

Slabs of extra armour have 
been fixed to the nipper hull and 
turret of both UJS.-made M-60 
and British-made Centurion 
tanks. This is apparently to pro- 
tect the gap .at which enemy 
gunners normally aim. 


During the Second World 
War, German tank crews 
.wrapped spare tracks around 
this vulnerable area and Soviet 
crews placed sand bags on the 
hall. But this is -the first time 
more permanent modifications 
have been made.-* 

A tank expert in London- said 
yesterday that the latest 
Western tanks do not need such 
extra armour, as they have a 
superior design to protect 
themselves. But many Third 
World nations could now want 
similar, modifications. There are 
estimated to be several thou- 
sand Centurion, M-fiOs and 
M-48s tanks in service through- 
out the world. 

For the past 20 years 'defence 
experts have watched Israeli 
tank and aircraft design closely, 
to note changes made as a 
Tesnlt of battlefield experience. 
The Israeli Merchava tank, the 
first designed and made in 
Israel, does not appear to be 
carrying the extra armour. It 
is also operating in. Lebanon. 


When the Crusaders 9 castle started showing its age 


BY STEWART DAISY, WITH THE ISRA£U FORCES IN SOUTHBIN LEBANON 


BEAUFORT CASTLE sounds 
like a bucolic setting in 
southern England which ought 
to have a golf course. But this 
particular castle was a Pales- 
tinian stronghold until last 
weekend, when it was snatched 
from them at great cost by the 
invading Israeli forces. 

Built by the crusaders 700 
years ago, It shows every day 
of its age. Having survived the 
Middle Ages relatively un- 
scathed, it took a. heavy batter- 
ing in 197S when the Israelis 
first defeated the Palestinians. 
The weekend battle to repossess 
it was bloody. 

The rubble strewn over the 
dirt approach road, the empty 
artillery shells, the bright 
brass expended cartridges glis- 
tening in the blazing sunshine. 


as wen as the hastily abandoned 
tins of Chinese corned mutton, 
all testify that the 50 or so wel- 
dug-in Palestinians needed a lot 
of winkling out 

Yesterday the black and 
white flag of Major Saad Had- 
dad’s Christian wri-utia Sew 
alongside the red and white flag 
of Free Lebanon at the castle. 

Occupying the high ground 
over Nabatieh to the north and 
the assumed Syrian positions 
to the north-east, Beaufort is 
an important vantage point for 
the Israelis to hold. 

It is also a critical staging 
post as the Israeli armour con- 
tinues relentlessly driving north, 
past Nabatieh. For six hours 
yesterday I watched as an un- 
broken convoy of lorries, t ank s, 
armoured personnel carriers, 


bulldozers and catering vans 
crept towards us up the cork- 
screw road. 

Beaufort stands just off the 
“main road” — a dusty, potholed, 
heavily mined trade which looks 
like something from an adver- 
tisement for a. Greek holiday. 
The terrain la a brown and 
green patchwork of dive groves 
set in rtrihng hills, with rushing 
streams in the valleys giving 
way to sharp ravines around 
Beaufort 

The convoy looked like a 
huge procession of beetles 
throwing up huge clouds of red 
dost Beside it men walked with 
thin steel sticks, probing for 
m ines. In the background dull 
thumps of artillery sounded to 
tile north-east 
*Ts that shelling?" one 


Sino-U.S. settlement prospects improve 


BY TONY WALKER IN PEKING 


SENIOR western diplomats in 
Peking believe that UB. conces- 
sions to Chinese sensitivities 
over Taiwan may have laid the 
basis for a settlement but warn 
that the two sides are still some 
way from agreement 

A fresh round of negotia- 
tions between U.S. and Chinese 
officials is expected to resume 
in Peking soon. A joint state- 
ment perhaps, in the form of a 
supplement to earlier agree- 
ments such as the Shanghai 
communique and the agreement 
on normalisation of relations, 
would reaffirm that the U.S. 
commitment to a “one-China” 
policy and would indicate that 
the U.S. is expected to phase 
out arms sales to Taiwan. 

But the Chinese may not be 
prepared to accept a less than 
firm U.S. commitment to phas- 
ing out arms sales within a 
specified time. 

A U.S. President would find 
it almost impossible to agree a 
Ann cut-off date for arms sup- 


plies because of legal con- 
straints such as the Taiwan 
Relations Act, which specifies 
continuing military support for 
Taiwan. 

China has indicated that it 
may be prepared to compromise 
provided there were agreement 
on a phased reduction and pro- 
vided that the arms sold were 
strictly of a defensive nature. 

Western diplomats in Peking 
say the Chinese have been sur- 
prised and pleased by the 
apparent distance President 
Reagan has moved from Ms 
original pro-Taiwan position. 

In a letter to Deng Xiaoping, 
the Communist Party vice- 
chairman, dated April 5, Mr 
Reagan gave qualified endorse- 
ment to China’s nine-point 
peace proposal for the reunifica- 
tion of Taiwan and the main- 
land. In a letter of the same 
date to Qiao Zlyang, the Chinese 
Premier, Mr Reagan hinted that 
the U.S. may he prepared to 


agree to a phased reduction in 
arms supplies. 

In return for the concessions, 
the U.S. is believed to have been 
pressing the Chinese for a com- 
mitment to peaceful reunifica- 
tion with Taiwan. 

China refuses to rule oat the 
use of force as it believes that 
to do otherwise in return for 
U.S. concessions on arms sales 
would amount to an infringe- 
ment of its sovereignty. 

"The Americans have a vested 
i nterest is taking up their posi- 
tron for domestic as weH as 
international reasons," accord- 
ing to a Western diplomat in 
Peking. “If the talks break 
down and relations are down- 
graded, theu.Reagan can say he 
lias bent over backwards to 
satisfy Chinese objections.” 

An important development is 
that Mr Reagan has become 
direday involved.. This is 
indicated by his letters to 
Chinese leaders and by Ms 


despatch off Vice-President 
George Bush to Peking for 
urgent talks. 

The recent talks between Mr 
Howard Baker, the Republican 
majority leader in the Senate 
and a confidant of the Presi- 
dent, and Deng Xiaoping 
apparently progressed weH. It 
was considered significant that 
during the discussions China’s 
paramount leader proposed a 
meeting with Mr Reagan. j 

The TLS. . ambassador In 
Peking, directly responsible for | 
the sensitive negotiations with 
the Chinese, was in Washing- 
ton last month and met Presi- 
dent Reagan to discuss the 
Taiwan issue. 

That meeting was interpreted 
as a further indication of the 
importance President Reagan 
attaches to an agreement with 
the Chinese to end more than 
a year’s bickering over Taiwan, 
which has at times seriously 
threatened Sino-U.S. relations. 


reporter asked. “Yes, of course. 
Did you think it was exhausts 
backfiring?" the Israeli captain 
replied tartly. Perhaps it was 
the Palestinians,- perhaps the 
Syrians, be said. 

Accompanying the artillery 
fire were sharp bangs as super- 
sonic jets flew across (he val- 
leys and endless chocolate- 
coloured helicopters, with 
bundles off supplies suspended 
beneath them, flying low 
through fee hUitops to avoid' 
enemy fire. 

In the wake of the column 
are the abandoned posts off the 
Nepalese troops off the Until 
force, and the battered but 
unbroken communities erf Christ 
tians and Shia Moslems, who 
have been trampled like reeds 
by the opposing forces. 


Nigeria 
calls for 
Chad poll 

LAGOS — Nigerii has called 
on rebel forces which took 
N’Djamena, the capital of 
Chad, two days ago to move 
quickly towards free elections 
and asked other countries not 
to interfere. 

A Foreign Ministry state- 
ment issued last night said 
Nigeria hoped the armed 
forces of the north (FAN), 
loyal to former Defence Minis- 
ter Mr BQssene Habxe, topold . 
now move quickly towards set- 
ting up a broadly based pro- 
visional government 

Other countries should exer- 
cise mari m i r m restraint In 
reaction to these develop- 
ments and avoid meddling in 
Chad’s affairs, it said. It added 
that Nigeria was particularly 
gratified that the sefotre of 
N’Djamena had occurred with- 
out a bloodbath. 

Renter ... 


In the village of Tfirait just 
below Beaufort Castle many 
bouses lay crumbled and buliet- 
scaitred, with rusted girders and 
pockmarked breeze blocks in 
haphazard piles. 

But tomatoes and tobacco 
plants thrive, geraniums and 
ihododendroms blossom every- 
where. War, rockets and bombs 
notwithstanding, washing is 
hung on the line. In toe Moslem 
homes, pictures of Ayatollah 
Khomesm are prominently dis- 
played. 

These people have seen so 
many invasions that they are 
friendly to everyone. One small 
boy came up to our car and 
spoke in Arabic. When he got 
no response, (he drew a Star off 
David in tbe thick dust on toe 
window. 


SYRIA was preparing . for 
general moblisation. of reserves 
yesterday as the Israels threat- 
ened to cut the highway linkin g 
Damascus to Beirut If (he 
troops are mobilised, it will be 
difficult for Che Syrians to keep 
mjt of a more widespread con- 

■ fijet with Israel, according to 
diplomats. 

The mission of U.S. special 
envoy Mr Philip Habfflb had 
still to get off the ground by 
late yesterday, afternoon. After 
an early morning arrival he 

■ was still in discussions with the 
American ambassador to Syria. 
Palestinian leaders' in Damas- 
cus quoted by Abdul-Katim 
Khaddsam, the Syrian Foreign 
Minister, as telling them, that 
“ Syria entirely rejects ail - toe 
conditions of Men ahem Begin, 
and PinUp Habib." 

. . Syrian officials claim tJbat 
. they now have 85,000 men. in 
Lebanon though tods’ is weH in 
- excess of diplomatic estimates; • 
These suggest that by early yes- 
terday morning, Syria • had 
moved two regiments. of T-55 
tanks, two battalions of special, 
forcses and one tank b&ttafiion 
from the first division, stationed • 
south of Damascus,: into 
Lebanon. , This is fo.-addittaa 
to 25,000 Syrian troops already ■ 
in the country. 

The 9M tank brigade, already 
In the key Bekaa Valley before 
the Israeli invasion, has taken 
up new positions with strong 
elements faring toe Israelis in 
toe sooth Bekaa. Forces. within 
Syria are at toe highest state ■ 
of alert but Damascus itself., 
remains and the immin- 
ence of war seems ito have made 
little popular impact 
Nevertheless general mobilisa- 
tion will mean toe call up of 

400.000 reserves in addition to ; 
toe 170,000 in toe Syrian ground 
forces. 

The main Israeli threat to 
Syrian strategic positions is at 
toe cross tog point near Safer 
where toe read from Beit ed 
Dine joins toe DamascusiBearut . 
road. Syrian ‘banks ware rushed 
to defend part of toe highway - 
when it was (threatened by .the 
Israelis late on Tuesday night 
Loss of the road would cut off . 

4.000 meal in toe Syrian 85& 
Brigade in Beirut 

Syria will probably regard toe 
permanent seizure of this high- ' 
way or a push into toe Bekaa ; 
Valley by toe Israelis as a casus j 
brill. The Syrians also know, : 
however, that if they fight the i 
Israelis alone, without allies, : 
toey are likely to be defeated. 3 
The only miiitaiy ally which' ] 
oould assist toe Syrians in such "i 
a war is toe Soviet Union, wito i 
whom Damascus signed a treaty : 



Mr Khaddam . . . sees Sbriet 

■ ambassador ‘ r 

■ . . • • , - - - ■ 

of friendship end aropBratitmin 
• 1980. This IS believed fo gdorah- ' 
tee Syria agafog: Israelii -attack,-' 
if necessary by- ithe despatch *irf 
'Soviet ground forces, - biit i £ dbes 
not include .Lebanpiu- 

- -'Some diplomats -in .Damascus' - 
believe that Soviet troops could. 
be sent. here yfety .qtiicHy.^ and, .' 
use the- large - amounts- bf 
^material and some of the 3,760“ 
tanks already stockpiled by toe: 
Syrian army- It is posmhier toat 
President Hafez aL^ssac^. f eri- 
- ing that he has ho alternative, 
might risk a war in I^jaaxon lf 
he frit he had strong .eiumgh 
Soviet military hacking,' 'to - - 
defend Syrian territory ;;from 
. direct Israeli attack. ; . . 

This would dearly beja-rfiB^y- 
option for the Sovfetsto iiafce::, 
“ They can sit back ih Moscow 
and let the Americans discredit V 
themselves with • the • Arabs," 
said one diplomat yesterday. 
The Soviets are also thoughfclp; 
have a-iioor opinion of .toft/ 
training of the Syrian force&X 

Just how for the Syrian*’ can:~; 
rely on the Russians- is StiffT- 
unclear. Mr lvan Aldiarpbv;'ti» ? 
first Soviet vie e-pxemi er, .visitea 
Damascus at Syria’s, invitatjftdj 
in late May. The Soviet an v 
sador in Damascus met . wife' .: 
Mr Khaddam yesterday, but -it . 
is not known what waaNH* 
cussed. . ■ . . V - vy'.' 

Without the Soviets, Syria 
will have only a iimited cbance 
in a war which the. .Syrian 
leadership has done its brat to 
avoid. The sudden' expansion 
of Israeli penetration;: fhto 

Lebanon, and demands from-Mr 
Menahem Begin, the . ISraeli 
.Prime Minister, toat ';Syi4an . 
troops leave Lebanon entirely .. 
seems, to have caught thfem by ' 
surprise. 


Taiwan microcomputer advance 


BY BOB KING IN TAIPEI 

A TAIWAN microcomputer 
manufacturer has developed 
what may be the world’s first 
personal computer veto Chin- 
ese language as well as English 
capabilities: 

Mcdttteoh Intern atiooai Corp- 
oration, a small Taiwanese 
research and development firm, 
has just unveiled toe micro- 
processor II Z, which -functions 
both as a home computer and 
an educational aid designed to 
teach newcomers the ins and 
outs of microprocessors. 

Mr Stan Shfh, toe company’s 
president, said yesterday that 
toe new device is . an updated 
version of its microprocessor L 
which was introduced last year. 
He said tog new version, which 
wiH be sold both in Taiwan and 
abroad, equals or exceeds- in 
functions and features higher- 
priced- devices such as toe 
Apple n home computer. 


- The baslc microprocessor U, 
which, the user can connect 
directly to his televf<pn set and 
to"' a standard cassette-tape 
* player, wHl retail for $500 with 
Cfrriri ese-laaguag e capability. 

The. English-only version will 
retail .for $800. Export prices 
are half suggested retail, and 
even lower in large quantities. 
By comparison, he saidL a slant 
lar Apple n costs $1,300. 

When options such as a $200 
speech synthesizer and gener- 
ator are added to toe Multitech 
; c omp uter, toe device offers 
computerized instruction in 
.English, Chinese and music. . 

In Its standard form, the com- 
puler. offers toe- user television 
games,;as weH as more practical 
fonenons such as household 
fin a nc ia l management, and. 
s tock; payroll, and accounting 
services for small businesses. It 
will also teach students the basic 


computer language, and when 
options are added /it vriir t omit 
: three other computer, languages 
aaweiL- • ■ 

- Mr Shili said toe new com- 
£ ‘‘98 per cent -vom- 
.pattble - with 

■packages for the Apple U, which 
served as a model for the firm's 
design, approach to - the Micro- 
processor IL . 

However, -tiie company wTWT 
.. not provide this software for Its 
foreign customers, because that 
Y* 0 ** 1 © -Apple patents. 

■ Distrflmtore abroad. wiUhaVe.' to ' 

' cither develop the programmes 

their customers need, or. hoy 
•Apple programmes "aiflr.raodjftr 
. them. • 

The heart of the’ -Chinese 
capability ig a unique system. of 
/Qunase-character generation, 
using only 24 keys marked ; ^h 
the. same munber of character 
comp onents to.^enerale "morcf 
than; .22, ooo Chtaesecbaracteis; ' 


,Yh o~ i 





















6 


AMERICAN NEWS 


. S* - 


WORLD TRADE NEWS 


Financial, ^Tunea; .TH.ui^ay-; 4 -v 




•* J 



U.S. parties offer 
to break budget impasse 


BY ANATOLE KALETSKY IN WASHINGTON 


W. German 
concern 
wins Soviet 
contract 


TWO NEW BUDGET proposals proportion of tie 20-odd liberal 


from tie Republican and 
Democratic Parties will be put 
to the vote today in tbe U.S. 
House of Representatives. The 
new plans are drawn more 
clearly along partisan lines than 
the seven budgets rejected by 
the House two weeks ago, but 
Republican. leaders hope their 
ideas may attract enough 
support from conservative 
Democrats to command a 
majority. 

The Republican plan calls for 
a . deficit of . $99.2bn, S3.4bn 
tower than the party leader- 
ship’s original proposal. When 
that was rejected a fortnight 
ago, some conservative Demo- 
crats said <they could not support 
any budget with a deficit above 
the psychologically significant 
$100hn barrier. 

However, the additional 
deficit reduction is achieved by 
even sharper cuts in welfare 
than originally proposed and 
this may alienate a significant 


Reagan budget that may finally 
be passed squarely on the 
Republican party. 

Any budget that the House 
passes will have to be recon- 
ciled with tbe plan adopted last 
month by the Senate. This 


By Kevin Done in Frankfurt 


Republicans from northern 
states. The plan also calls for 
steep cuts in foreign' aid and 
an additional $350m reduction 
in defence spending. 


The Democratic party l«der- by t^ ^rSST 

ship is proposing a $10/-5bn — u — 


UNDE, the West German 
mechanical- engineering, 
refrigeration, .and technical 
gases group, has been 
awarded a DM 300m (£7 1.4m) 
contract from, the Soviet 
*Unlon for tbe construction of 
a .250,000 tonnes a year 


their initial budget. . ™ s » ’ SSS ~“ by thfi ta and L ethylene plant, 
because of higher provision for I Ethylene is 


unemployment benefits and 
medicare. . Military spending 
would be reduced to a 5 .per- 
cent real growth rate, com-; 
pared to the 7 per cent pro- 
posed by fhe Republicans and 
10 per cent init ially sought 'by 
President Reajpin. The Demo- 
crats would raise $3 1.71m in 
new taxes In 1983, compered 
with the Republicans’ $20bn. 

The Democratic budget is not 
given much chance of. success. 
There is some suspicion that 
the leadership has deliberately 
chosen a more partisan 
approach with the intention of 
putting the blame for any pro- 


agreement would be virtually 
assured with President Reagan. 
His budget director, Mr David 
Stockman, played a key role in 
drafting both the Senate and 
the House Republican -plans. 
However, if the House passes 
tbe pemocratic plan or some 
version of it, the present budget 
deadlock wall continue, perhaps 
indefinitely. 

If the Houses of .CongFess 
cannot agree .oh' .a budget, 
present „ spending and tax poli- 
cies will remain in forte, lead- 
ing to a deficit - of around 
$180bn for fiscal 1983, . which 
begins in October.' 


the 


. .. . most 
Important basic petro- 
chemicals building block and 
is the raw material for a wide 
range of chemical products 
from plastics, and , fibres to 
paint and anti-freeze. 

The plant, which will also 
produce other basic petro- 
chemicals such as propylene 
and aromatics, will be built as 
part of the Kalnsch chemicals 
-complex' in the Ukraine. .The 
raw material for the. plant will 
be gas oiL ; 


Hie deal was signed during 
: ojErMr 


Setback for Republican Right 


BY ANATOLE KALETSKY IN WASHINGTON AND UOLHSE KEHOC IN SAN QWNCISOO 


THE Republican Party’s con- 
servative wing suffered a double 
setback in the first round of 
primary elections held In 10 
states on Tuesday. In this most 
serious test of electoral opinion 
in the U.S. since 1980, the signi- 
ficant results were defeats for 
the strongest supporters of 
President Reagan's economic 
and social policies in races for 
Republican senate nominations 
in New Jersey and California.. 

In New Jersey, the Republican 
senate nomination went to 
representative Millicent Fen- 
wick, an outspoken liberal des- 
cribed by her opponent as 
“ Jimmy Carter’s mast loyal 
Republican in* fhe Congress/' 

The defeated candidate. Mr 
Jeffrey Bell, was a former 
speech writer for President 
Reagan and one of the archi- 
tects of the “ supply side " tax 
cuts at the heart of Reagan- 
omics. In the - California 


primary, both Mr Barry Gold- 
water and Mr Robert Do man, 
the two most conservative can- 
didates. were also defeated for 
the Republican Senate nomina- 
tion. 

Tbe winner, Mr Pete Wilson, 
reputed to be a moderate 
Republican, moved significantly 
to the Right during the campaign 
to outflank Mr Goldwater, who 
bad been the leading contender. 

Mr Wilson, the mayor of San 
Diego, now faces Governor Jerry 
Brown, who won the Democratic 
nomination, in the race for the 
senate seat 

The Governor, who - had little 
competition for the nomination 
from within his own party, woti 
51.1 per cent of the vote. His 
closest competitor, author Gore 
Vidal, won 15 per cent. 


for governor. He' is thought to 
be a likely wither in his bid 
to become the first elected black 
governor in the 'U-5- • 

Although not an eloquent 
speaker, Mr Bradley has gained 
widespread support. He repre- 
sents an American success story. 

The son of a poor share- 
cropper, Mr Bradley worked bis 
way up through the' ranks of 
the .police, force, while also 
studying law, to become a major 
' He has 


the visit to Frankfurt 
L. Kostandov, a deputy Soviet 
Prime Minister and Mr V. 
-Listov, the Russian Minister 
for the Chemicals Industry. ' 

The contract - covers 
engineering work, equipment 
procurement and supervision 
of construction and com- 
missioning. 

. Another West . German 
process plant engineering 
group, Uhde, a subsidiary of 
HoecJust, the Federal 
Republic’s largest chemicals 
group, has also been awarded, 
part the work at~ the 
Kalnsch site, inri nriUng the 
planning and delivery of a 
100,000 tonnes a year benzene 
plant- 

The gas oil cracker and 
associated plants are due to 
come into production In 1980. 


for export insurance 


figure In local politics, ne nas t i, * 

taken a moderate stance on most | Japan tlgntens rtues 
issues. 

Opposing Mr Bradley for the 
Republicans, will br attorhey 
general George Deukmejian, 
who won a narrow victory over 
Lt-Gov Mike Curb. With 92.4 per 
cent of the votes counted, Mr 
Deukmejian held 51 per cent 


Los Angeles .mayor * Tom-, with Mr-Gurb trailing at 44.6 per 
Bradley, gained an overwhelm- Mr Deukmejian has taken a 
ing 62 per cent of Democratic strong position on law and 
votes to become the candidate -order.'- 


Mobil to 
pullout 
of Libya 


Stock index futures face 
mounting criticism 


Japan’s 'Ministry of Inter- 
national Trade and Industry 
(Mitt) said yesterday it is 
tightening its rules for the 
provision of Insurance on 
exports to Yugoslavia. East 
Germany and Romania, Reuter 
reports from Tokyo. 

This Is because exports to 
these countries may Involve 
credit risks* in view of their 
deteriorating foreign exchange 
positions,- it said. 



BY OUR WORLD TRADE STAFF 


MR PETER REES, Britain's General Agreement OQ : , TaJCi^ wlficb -would be adv«re^y, Sf 
Trade Minister, yesterday and Trade (Gatt). - _v ’ “ J ” 

nudged open' the door to the He favoured a greater 
possible estebEdhmetti of a “transparency” in fotmml&unl 
British counterpart, of the TJjS. trade relations, and backed the 
International Trade* Commas- idea .thatr Gatt. also be inv olved 
sion. .the government body that in ; scru tin i s i ng ^ t he . trade 
rules iMematrotati trade restraint agreements.' 
disputes affecting tfce. T7.iL- . 

In a 'speech an London he 


He argued, gainst- .'Third 
indirectly, affected-" , World claims, that the developed 

Mr Rees’ remarks, . made ! bad become more protec- . 
before the Wilton Bail*. confer^ bye- .He ^acknowtedged -that 
ence on protectionism, "versus a. :™er!^ naa- been an increase in - 
free-trade world, appeart '' to^ ^Un^Kdlnated 

reinforce the minister’s,Jview measu^.-ia^.a - gre y arw ," 
expressed •; last morffe,., . that Snctading/ . voJunttBy\ restraint 


He said a case-m tgbt b ejgmde Eritain should strengthen its agreements ta.recentyeara. 

Ia a speech an* L<radon he SS,. 'support for&attr add moire away He addetL however: “ General 

argued attest what he called Brib^ trade CTonmJa- : {rom independent . actioi " on tariffs 'have fallen steadily uhder 

the myth that Britain had son body, each as m the US. ^tcrnatioHal. trade disputes-: successive^ixxmd^ at the Gatt 


become more, protectionist in • ^ 


its trade policies.' He also 
repeated his call for. an inter-' 
national -framework to promote 


■ an vtswewmi— vu pv— w • . — •*- — ~ “ - — — . — - .- ■ ■ . . _ . ■ .... t... , ■ — 

study -and. pubiiah’ the wider .. * “ore balanced deb ate- ora -given. gests the CommnniTy s average 
costs of any proposed .new pro- mi^sur^.' and--- “the- : narrow traderweignted-tariff on mdns- 


nausfi-it namevvoiK to promote cuoe vt <*ujr iiiuiwmu — e- — : — — *.,n 

and safeguard free trade in tectwnist measure* not oniy to sectopl cc regional casfr. could trial goo ds. w ill-f all jess than 
■j»rri««i_4ife insurance, bank- consumed, whose voice would be judged - against a .. widex - 5 P?*": ■ cen$ T^?yo 
aviation an4 shipping, be more widely heard, hi* also.' national W international bade- Rofund redu ctioos ^baye been 
t covereTxind^tS to other., sectors of industry. groimeL'* L,.: ^ . i;!. ; fell? 


ing, civil 
areas jdot 


InYestment in China totals 



BY GOUNA NACDOUGAUL 


DIRECT' FOREIGN tnvestment offshore off explbrattei . and awrovad from : the Mini st ry of 
supplied Or promised to China development, $460m" worth of Foreign Economic Rdatiojis 
since 1979 now- totals $2.8bn machinery; and equipment for _ and Trade ’vfeen tfce project -ffi 
(iL5bn) according to figures small compensation trade pro- first suggested, on completion 
released at the investment coin jects and $189m for equity joint of a. feasibility study, and when. 


in 


ference - which - : opemed 
Canton this week. ! 

The meetiiig, sponsored, by 
the Chinese Government and 
the UN Industrial Development 
Organisation (UMdo) ’ is 
designed to attract- . ' further 
foreign Investment to a range 
of -industries 


ventures. 

To ease foreign investmeblr 
in China, a new law on (econ- 
omic contracts with, foreigners, 
and implementing regulations 
for Yhe existing joint venture 
law and foreign Investment, 


•tib e formal- documents suth a? 
the contract are drawn up. * 1 
However, . the paper con- 
firmed that projects helow. a 
certain value can be ratified by 
the provinces concerned. - 
AP adds from JPriangt The 
first 'Chinese trade promotion 


■wfll, be published, shortly, 

according to Hbng Kong Press - group to. visit tie Soviet- Union 
Mr Ww' Y nrtiiiig , vfoe mlids ter reports. : - in ' a decade ; is returtufi^ to 

of Foreign Economic Relations - - The reports added feat China Peking, after tf r twoweek trip 
and Trade said $LSbn had come- had f penalised^ fee procedure to discuss itrade. and'I earh about, 
from foreign partners fpr co- for- fee. Chinese partner in a Soviet ■ ligfct ' mdustiy,;. : tihe 
operative •enterprises, $498m venture with- fareignera. The official' :^XiifeUa news; ageucy 

i side how has. to gei said.' • *’ . 


from foreign oil companies for Chinese 


Pertamina awards three contracts 


.BY RICHARD COWPEH M jAKARTA ■ 

DESPITE * THE gloomy short- anti gas over fee next sir years. 


term outlook for Indonesian oil 
production, foreign oil com- 
panies continue to invest in the 
country’s oil and gas ’industry at 
record levels. 

Pertamina, . Indonesia’s state- 
owned oil company yesterday 
awarded three oil and gas 
exploration and ' production- 
sharing contracts worth weH 
over 9200m. (£lUm). 

Under ^tbe contracts, three 
foreign oil. companies — Amoco 
of the UJ5., Inpex of Japan and 
Jackson Exploration of the U,$. 


In addition, fee .companies' 
agreed to pay Pertamina $3m in, 
signature bonuses for three 
blocks totalling around 58,000 
square kilometres. On tap of . 
this, they agreed to. pay 
Pertamina more femi S50m in 
production bonuses if output 
reached specified levels. 

This brings to nine the num- 
ber. of new espldratioti. and 
production-sharing ’contracts 
awarded by Pertamina so far 
this . year, hadfiglng 4® ..over . 
$500m fee . total ■ investment 


— agreed to spend a Trimi-m^ m «fnmnri iimi»n,tis made by. foreign 
of $197m on exploring for oil ■ companies on new blocks in 


.fee- last six months. Together 
the nine . blocks cover an area 
of more than 135,000 sq .kms: 

Last year, foreigi oil com- 
panies took up 10 new, blocks 
add are undeWtood to have 
^sent a record $3bn on explor- 
ation, production and develop- 
ment an Indonesia up by 
around 40 per cent on expendi- 
tures in 1080. 

But -this year many, feared . 
that because of the world oil 
glut and .the. poor demand,, 
expenditures on 1 exploration 
and production would either 
remain static or fa£L in real 
term*; • ' ■ 


Irelandplans 
to 


insurance v 

*y Brendan KeenWi.Irt DuWfe^ 




TM . - 


THE IRISH Govekhment 
Introduce 7 legislation .* *to. 
--extend.;, oaport ; credit 
■ ancefo.srtrice indu^npsf^ii 
present . -such: 'insurance . 

. • limited . to ' manufactorcrr 
..-‘capital projects and- "a Smf' 
services ^such - as. archifiEmie 
and’ cmisultency 
The ; DeW.legislatioo.;, “wiff. also: 
enable fee Triah /;- Expert 
Board. CTT, to. promote" 

•o-; assist fee export- of serview,-.". 

. awidjng-. to .Mr~pesm>nfl 
O'Malley. theTrade andCoifr 
; * ine(rcef JdJmrtfflr:.-’ . 7 
Service expcH^^Mo^-forlesB 
• than 1-per'cepirdf' fotaXlridi ' 

. bat It is hoped this figure 
grow 1 as fee result of * 
to attract, foreign 4 
industries, -to -.Ireland. 

- target is to triple the 

- teff . jobs being" created in 
sector by 1985. ■■ 

Last year '■ ■ . the . 

Development - > ••• 'Ai. . .. 

(IDA) axmounced an im 
tive package, aimed at 
service ' companies; . 

'■include - eo^ilqymmit - , ■ 

■ training grants, and a£ ; 

. ' tension of lrriand’s .iO -pej- 
dent tax- for : marafetefero^-. 
-companies to certainiisrarife : * 
industries. :- . • •' 

Among seetanr winch IDA 
.-selected are. data 

- and'::-; software' 

technldti: - and 
services, rand - . Intefeaiifl 
-finifiaa;tervic» ■: ,• - sJ'" 


.s'.';. vV- ■ V- 


BY OAVfD LASCEUJES IN NEW YORK 


By Richard Johns 


MOBIL' yesterday announced 
the termination- from July 13 
of its operations in Libya 
where, together with Veba of 
West Germany, it holds a half 
share of a concession. 

The decision is understood 
to have been taken following 
several months of futile ex- 
changes over the U.S. major's 
complaint that tax and roy- 
alty rates on its equity oil 
made the lifting of its 
entitlement uncommercial. 

Mobil is fee second oil 
company to pull out of Libya 
over the past eight months. 
Last November, Exxon with- 
drew at a time of rising 
tension between Washington 
and Tripoli, but stressed that 
it was doing so for- commer- 
cial reasons. 

A spokesman for Mobil 
declined to give a value for 
fee un amortised assets shared 
with Veha on a 65:35 basis, 
bnt the company's statement 
referred to “ongoing discus- 
sions” — a reference to hopes, 
which must be regarded as 
slim, of obtaining some com- 
pensation. ' 

Mobil regarded the opera- 
tion there as particularly 
expensive. 


STOCK INDEX .futures, the 
latest addition to the fist- 
growing list of financial futures 
in the U.S.. may he gaining 
investor acceptance but they 
.have yet to dispel political 
scepticism. 

Sharp criticism by the House 
energy and' commerce commit- 
tee, which is holding hearings 


investment. *'• ' 

The trader who predicts cor- 
rectly. collects gains either in 
■ the form of appreciation of the 
value of his futures contract or 
by allowing it to mature and 
collecting cash. 

• Because cash father than 
commodities are involved, stock 
index futures have been criti- 


Morocco diversifies sources of foreign investment 


BY FRANCIS GHKES 


THREE MONTHS ago. a 
Japanese -Spanish consortium 
headed by Mitsui and Fomento 
de Commereio Exterior won a 


$200m 


won toy Davy Loewy 18 months western Sa&ara, soft -prices for. ‘ officials foow are seeking, new' 
t* 1 ?. . interest shown by phosphates which. . • restrain markets, such as in the U-S.. 
Mm on Engin eering In tendering Morocco’s major hart-currency and Canada, at least foe leafeer 
.^. an ° us 4 phosphate -reck- earner and l»gh UtS. interest prodoxjts. Apush as alsofceing 


confract from Morocco related plants suggests a grow- rates, which pushed the debt made to export more products 


oh futures this week, while . 38 a ttoinly disguised form 

unlikely to result in anything of gambling. 


as drastic as a ban on trading, 
could hamper their growth. 

Mr John Dingell, the Demo- 
crat committee chairman, said 
stock index futures would 'lure 
investors away from the stock 
-market into highly speculative 
trading which would divert 
capital away from business. 

He said: “At the heart of 
our concern is the proliferation 
of stock index futures and 
options and their effects on 
capital formation. It is impos- 
sible to overstate the danger 
to investor protection and 
market stability that is posed 
by a highly leveraged and 
highly complex instrument such 
as a future or an option on an 
equity index.” 

Stock index futures give 
investors a way to take positions 
on the future course of a widely 


One congressman at the hear- 
ings called' them a “giant, 
white-collar numbers game.” 

However, U.S. market regula- 
tors have taken a more positive 
view. They believe futures add 
to the efficiency and liquidity 
of the underlying market 
Stock index options allow 
investors to buy and sell 
options on stack index futures. 

Stock index futures are 
widely expected to establish 


to build two sulphuric acid ing interest 
plants at Jorf Laafar. south of _ The need for Morocco ‘ to 
Casabalnca. increase exports has been given 

This marked a major break- added urgency in the past three 
through for the Japanese in years for two factors — the sharp 
Morocco and greatly upset the deterioration in the kingdom's 


service ratio . on. fee foreign derived from phosphates rock 
debt up . from 23 to 30 per cent such as ptoospboric a xad and 
Morocco’s exports Increased by ■ irtpfo .. phosphate fertflasers. 


Frenab — Heurtey, fee French 
plant engineering company long 
present in fee Kingdom, was 
also bidding. 

But it also signalled a funda- 
mental shift in Moroccan trade 
policy — the need to diversify 
foreign sources of investment 
in order to broaden the King- 
dom's own narrow export base. 

Over the years, French com- 
panies . have come to regard 
Morocco as their own hunting 


terms of trade and growing 
protectionism of fee EEC, 


26 per cent last year to $2.01bn, 
a worthy performance but one 
wfoMh officials in Rabat acknow- 
ledge must be improved. 

Export efforts have been 


which absorbed about *55 per r. 

cent of Morocco’s exports last SS® 8 .™*!® 1 ? *** ent ®5? n !* n * 

With Spain, which is 


year. 

Morocco’s fourth largest market 
and a competitor in many of 
the goods it exports to western 
Europe, expected to join the 
EEC iir the next few years, the 
threat to Morocco’s exports is 
grave indeed. 


M, Azzedine Gnessous, Minister 
of Trade and Energy and 


Exports increased 73 per cent 
last year to 8280m wife Hurt- 
World errantries suefc as. BrazB, 
India and Indonesia Oakfog large 
amounts. . 

■ Trade wife Coraeoon ’ coun- 
tries has also been growing, 
albeit at a slower pare: it 


helped by fee recentiy founded 0 CC o 4M ^ML^ m ' just over ll per 
Centre Marooain de Promotion ofMoroccan exports Such 
de* Exportations. Some notable *** 

successes have been scored: the m * barter beds, but 


MSddle East alone bought 


a recent agreement aiHows for : 


75,000 *** «f « ^ S' 


*K e J L* 1 ® MorSSm 


themselves as a leader in the ground, but they will have last year to $1.98bn, compared of sellfng tomatoes through toothpaste, sril 

«nonm,l ftthiMC tiiiriimcc uihinVi I V.MI. T . x. _ I .. .. Kl*nte!MV« TWdwto onJ Onanna. WCW1 RU XVUXlv.J. 


financial futures business, which 
has so far centred on interest 
rates- and currencies, because of 
the enormous size of the equity 
market and the vast numbers 
of people who invest in it 
Trading was launched last 
February on the Kansas City 
Board of Trade, and has since 
started on the New York 
Futures .Exchange and the 


watched stock market index,'' Chicago. Merctantile Exchange, 
like standard and poors, either The Chicago Board of Trade is 
to speculate or to hedge equity due to start soon. 


derived little comfort from fee 
award of another contract 
worth $5Qnu late last month to 
Marubeni Coloration, . also .of 
Japan, to build a sugar cane 
processing factory outside 
Casablanca. 

While France remains 
Morocco’s major client West 
Germany, the Netherlands, Spain 
and Italy have made great 
strides to improve their position. 
The UK is way behind, though 
the £75m steel rod mill contract 


with an average of $L4bn 
during fee 1976-80 period. It 
■surpassed fee previous record 
deficit of. .$1,471x4 an 1077. 
Sharp increases in fee energy 
and food bills (54.6 per cent up 


Britain’s Maries and Spencer is 
currently in pgroess. . ■ 
Restrictive EEC practices, like 
delaying the start of fee setting 
season for some varieties of 
early fruit or vegetable product 


in fee first instance . o rnfl 62B from Morocco, has cost fee K5ng- 
per cent in fee second) where dom dearly. Morocco tris been 
the main problem areas. rather too successful at sefflug 

The worst drought in firing sirah products to -EEC countries, 
memory explains why lest It also has done well wife dtotflres 
year's figures are so bad. -But and leather products, 
other factors indUxfo fee 1 Cost But Mmioccb’s ’ success is 
of energy, - fee war m fee proving oousiterproductive, and 


Morocco so far has failed to 
tap a major potential source of 
hard currency income, fish. The 
country’s Atlantic coast is one 
of fee richest fishing- grounds 
in the world, but the annual 
Moroccan catch is estimated 
at a mere JlOOm. It is estimated 
more than $lbn could be drawn 
from tiie sea each year, fee 
bulk of which would be ex- 
ported; but Russian, Japanese 
and Spanish vessels so far have 
been fee main beneficiaries. 




ML Azzedine Gnessons u 


spearheadingefforis' 


. Paul Betts reports on U.S. consumers’ abandonment of smaller cars for their first love— the six-passenger gas guzzler 


M Guessous hw; carried fife 
pugrim’s staff round - Eufope 
warning that : Europe" cannqt 
both abut oiif Momsan’gi “ 
and expect to continue' « 
major contracts.- 

• ?- 


Detroit’s gospel challenged by renaissance of the big car 


MOST U.S. drivers have never 
really felt._ comfortable with 
small ears. " They were forced 
to' adapt to them, as indeed -was 
Detroit, in the wake of the oil 
shocks of the 1970s. But petrol 
is again plentiful and relatively 
cheap, so Americans are again 
buying the big six-passenger 
car in which they can pack 
their children, fee dog and the 
luggage and cruise along for 
miles to Vermont or Tlbrida" 
to the sound of stereophonic 
music.- 

The renaissance of fee big. car 
is not altogether good news for 
Detroit and is particularly bad 
news to importers of foreign 
cars. Chrysler, or the New 
Chrysler as the company calls 
itself these days, is among those 
most upset by the remarkable, 
if perhaps temporary, return - 
of the big car. 

Mr Lee Xpcocca, the Chrysler 
tsar, recently aired his 'feedings ' 
on the subject to New York 
sales executives. “After we 
manufactured our own made- . 
in-America energy crisis in. 
1979, with regulated prices, 
misallocation of fuel and riots 
at fhe gas pumps, this .country 
decided to get serious about 
energy. And we did the right 
thing We decontrolled -oil and 
gas prices. Gasoline went to 
81.40 (77p) a gallon and every- 
body agreed it was on the way 
to $2. We said goodbye to gas 


guzzlers and hello to a whole 
"new generation of fuel-efficient 
cars from Detroit, produced at 
a cost of $80bn ” 

. So far., so good, but what 
happened subsequently has 
deeply distressed Mr Iacocca. 
“ The price of gasoline,” he says, 
“has dropped to below a 81 
in some areas, the U.S. public Is 
back.jn love with big. cars again, 
and the demand for our most 
"Tuel-efficient "models has 
dropped like a rock. No wonder 
the car market is screwed up.” 

■ Chrysler, perhaps more than 
any other U.S. car maker, has 
committed its future to compact 
fuel-efficient cars. Thus, one 
suspects with a little self- 
interest, . Chrysler is proposing 
its own solution to the country’s 
economic woes. ' 

Mr Iacocca 'has told Washing- 
ton, his shareholders and any- 
one. whocarestp listen, that one . 
way to reduce 1 in part the federal 
deficit is to slap on. a . tax on 
imported oil and to levy an 
immediate excise tax on petrol 
at the pump. “Either action,” 
he says, “would restore fee 
trend toward fuel-effiaqnt cars, 
and let fee world know feat. 
America, is " serious ' about” 
energy.” - . 

The irony for Chxysier is that 
one of its biggest success stories 
of late is its new convertible 
car models — a return to the 
grand old days of motoring dn 



after fee 1974 and 1979 oH 
shocks but then bounced back, 
as soon as fee situation., eased. 


Klssgs of the road: left, the 1962 Dodge Lancer-— roomy in the U.S. tradition. Right, Chxysler’s hot-selling new conver tibl e* 

the Le Baron 


fee 1950s. Wife -fee general per- 
ception feat fuel will remain in 
abundant supply and that prices 
at the pomp will remain rela- 
tively flat for some time {-the oil 
industry forecasts only modest 
increases during the next five 
years), Chrysleris convertible 
models are selling like hot 


At- fee company’s . annual 
meeting this month. MrTacocca 
remarked "we currently have 
more than 18,000 orders for the 
Lebaron and Dodge 400 con- 
vertibles ■ . . and fee orders are 
coming in at a rate Of 1,000 a 
week.- It’s one of. the hottest 
"cars On fee market.” ' 

-. It «■ not so much performance ' 
consumers are , demand ing , . 
according to M r Jack 
Madejobick, director of market- 
ing information at GM’s 
Chevrolet division. 


It's 


basically roominess and comfort 
and the feeling of larger cars 
Americans want,” he says, add- 
ing that in any case " American 
roads are made for tbe large 
car.” 

The statistics show that safes 
of foreign imports in fee first 
•five months of tbe . year at 
902,590 units were 15.6 per cent 
behind. the 1.1m deliveries dur- 
ing the same five months last 
year. The only major gains 
were made . by “ luxury cars,” 
wife Jaguar reporting record 
sales of 3,569, or 122 per cent 
more than an the same period 
last year, Volvo .qp. 11 per. cent 
increase- arid Saab -a 13 per- 
cent* increase. 

Japanese car soles in fee 
U.S. were down by 14.4 per 
cent, although fee decline was 
also due to fee voluntary export 
restraints Tokyo agreed to last 


year. .West German-made cars 
sales were down~26.8 per cent 
during the' first five months' of 
this year, compared wife the 
same months in 1981. ‘ 

Small car imports faced tough 
competition from domestic small - 
cars because ■ of the discount 
and promotions war waged by 
Detroit and dealers. While fee 
so-called “sticker war” helped 
prop up sales of small domestic 
cars, fee good news came from 
the roomier six-passenger 
dud fee luxury models. 

Mr Madejchick of GM says 
that so far this year the six- 
passenger -car has accounted .for 
19.3 per cent of- totiil.'U'-Sy oar ■ 
toles. This compares to 16.1 per 
cent fee same time tost year. 

“ That’s a dramatic shift,” he 
claimed. And it has been 
especially welcomed by GM, 
which fee Chevrolet executive 


says sells two out of every 
three six-passenger car tn fee 
UjS. wtth the Chevrolet Oaprlce 
topping the list. 

As for American luxury cars, 
with, fe&r balloon suspensions, 
their gadgets and plush fittings, 
Cadillac are selling at a 36.2 
per cent higher daily sales rate 
fean -last year and Fort Lincoln . 
sales were 51 per cent hdgher 
in April compared wife fee- 
same month last year. And, 
Chrysler says feat big xms 
currently account for about 17 : 
per cent of fee company’s . 
overall - sales compared with 
around 12.per .cent at fee same 
time last year. 

r. Although air three ' domestic- 
car manufacturers , stress feat 
fee fuel-efficient car is- the 
growth market of fee 1980s, . 
GM’s Mr Madejchick points eut - 
that big ears fell out of grace 


^ Another interesting, illustra- 
tion of the changing, trend in 
UJS. car buying is fee decline 
-in diesel car sales. They were, 
until last December, one of fee 
brighter spots of fee dreadful 
U.S. oar market. Last December 
they reached a peak of 7.7 per 
cent of total U.S. car sales after 
accounting for 5.4 per cent (or 
169,624 units) of the car market 
in fee first four months of last 
year. In the first four months 'of . 
this year they accounted for 43 
per cent, wife the unit sales ' 
declining to 125,699 cars. 


but the so-called commitment 
to Corporate Average : Furi 
Economy. The Cafe > limit', 
1985 is set at 27J> mHes per 
gallon. 


Although manufacturers' ex-, 
peer diesel sales to increase 
again in. fee longer term, tfcey 
blame fee sale incentives on. 
non-diesel cars, the decline m 
petrol prices and fee general' 
rfnft of consumers back to fee 


Although, .under fee 'Cafe 
rules, manufacturers can stifi 
make cars below fee Cafe limit, 
there are also specific frid con* 
sumption -limits for mdiridual 
cars. The minimum fdrt-. 
-efficiency requirements started 
at 15 mHes per gallon -In 1980 
and has been steadfiy. rising, to 
increase -eventually:: to 
miles per gallon m : 1986^Tfo»» 
limits, according' :to‘ GiTs SEr 
Madejchick, would ' he;; .Jaiir 
possible to meet for ,' fee . con- 
ventional rear-whefid-d ri ve; sis- 
passenger oar. Bur new engfo® 
-technology . and- diesel -.w.oififi 
make it possRrieJ ; V 


i l 1 


big gas-guzzlers, for fee supris- 
ing foil in diesel sales. “Four 


months ago -they all wanted 
diesels but the market seems to 
be dropping dead," one Nwr 
York dealer remarked. ' ' ™ 


No one expects fee fclg 'car. 
to sustain its current 'revival. 
Legislation, for one titing, 
argues against them, . Car 
makers by 1985 will fcave to 
adhere -to fee Cafe, whife is 
not a pavement watering Itoie 


Although, :■ according-' jo - Si® ' 
current gospel 4n DeteoaV/fe® 
small car is . fcere -“to rtas^ Ig . 
the UA, feat *>eiroi' 
inevitably increase ;'.jgjau* ; "tS£ - 
same stage, 'fee consumer is ft 
present having a fliug wjfe fhe 1 
traditional b^ ' U5. car'. 'And 
Detroit ' itself seems Vfo ■ bp' •' 
Qbanging its own spspeil. Thb 
big three axe ail dereloping 
bigger, roomferV fcbat4Vheel 
cars. * As Mr Roger. Smito, fee 
cffialnnan of GM, has observed^ 
.“.People don’t want small . cars; 
they want fuel-e ffici e nt cars *V : 


P 


L>-.^ 

*'%■ 


A 


i 




:il 


Financial limes. Thursday June 10. 1982 


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Today’s high-priced financing can increase the cost 
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Our Trade Finance officers already have: low-cost 
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Vlfilliam Ha#ipinl«^Qn 7265260; Alain Choumert in Par&on 260 3380; Fiderico !m^ 



























• : - . - r - • - *y. ^ .J’- ■ •" p4 r - ’ 

Financial TSneS Thursday Jane 10 # 182 - 


UK NEWS 


Barclay card to 
reduce interest 
rate next month 


BY PAUL TAYLOR 

BARCLAYCARD, the credit 
card operation run by Barclays 
Bank, is reducing its monthly 
rate of interest charged to card- 
holders from 2.25 per cent to 
2 per cent from July 1. 

Barclays’ move matches the 
reduction announced by Mid- 
land Bank on Tuesday -for its 
Access cardholders in the wake 
of the banks’ cut in base rates 
by half a percentage point to 
12.5 per cent. 

The four other major banks 
in the Access scheme are still 
considering whether to reduce 
their interest charges, although 
it is expected they will follow 
Midland and Bardaycard per- 
haps early next week. 

The new interest rate means, 
that the 6m plus Bardaycard 
holders claimed by Barclays will 
pay an annual rate of 26.8 per 
cent interest on outstanding 
balances if they use the card to . 
buy goods or services and about 
27.2 per cent if they draw cash. 


No interest is charged if the 
whole of the outstanding 
balance is repaid within 25 days 
of a statement being issued. ' 
A card holder who buys 
worth £100 and pays back tile 
holder goods worth £100 ■ and 
pays' back the full amount 
over, three months will be pay- 
ing an annual percentage 
interest rate of 1&8 per cent 
Midland, which is reducing its 
Access card rate from June 17, 
appears to have taken the other 
banks by surprise in acting so 

quickly. 

National Westminster Bank, 
which has issued about 40 per 
cent of the 5.5m Access cards 
in existence, said yesterday that 
a reduction in thd' interest rate 
was still under consideration. 

Monthly credit card rates 
were increased to 2.25 per cent 
last October from 2 per cent 
Since then bank base rates have 
fallen seven times from 16 per 
cent to 'the current 12.5 per 
cent 


Building society investors 
form protection group 


BY MICHA8- CASSELL 

AN ORGANISATION aimed at 
promoting the interests of 
building society investors and 
borrowers has been formed by 
Mr Christopher Punt, who 
earlier this year failed to get 
himself elected to the board of 
the Nationwide Building 
Society. 

The Building Societies Mem-, 
hers Association has been 
founded at a time when the 
question of the accountability 
of building societies to their 
members bas become a major 
issue and societies have faced 
angry protests from members 
about the way they conduct 
their business. 

The critics, including MPs, 
have described the societies as 
“self-perpetuating oligarchies” 
saying they have paid little 
attention to calls from the 
membership for changes in 
longstanding management 
policies and rules. The 
Nationwide; and the Anglia 
Building Society have been at 
the centre of a continuing con- 
troversy involving attempts by 


members to .get themselves 
elected to the societies' boards. 

The association, based in 
Barnstaple, Devon, intends to 
promote a private member’s 
bill is parliament to put an 
end to the “present undemo- 
cratic practices” of building 
society directors and to “give 
investors and borrowers alike 
a real voice in running their 
societies.” 

Mr Punt, who Is the associa- 
tion’s first chairman, says irt 
has contacted a number of MPs 
to enhst support for its cam- 
paign. 

“ It is practically certain- that 
changes in building society 
legislation are just around the 
corner.” he said. “We intend 
to give voice to the rumblings 
of. discontent within the move- 
ment which have recently 
reached a crescendo.” 

The association's secretary, 
Mr W. J. Taylor, claimed that 
" scores ” of people were join - 1 
ing at £5 a time, including 
members from a wide range of 
building societies. 


University 

research 

‘under 

threat’ 

- . By Mtefad Dixon, ; 

Education Correspondent 

THE GOVERNMENT was 
warned yesterday that only addi- 
tional public spending could 
avert damage to research cap- 
abilities in universities, which 
account for about two-thirds of 
tiie country’s fundamental 
research work. ; 

The warning came from an 
official .working party led by 
Sir Alec Mernson, vice-chancel- 
lor of Bristol University... ..It 
estimated present public spend- 
ing on research in universities 
at nearly £600m a year. 

But the turmoil caused by 
cuts in the institutions’ spend- 
ing would result in permanent 
damage unless “ relatively 
modest ” additional money were 
provided to give universities 
more time to' * achieve the 
Government’s economy targets. 

The working party found no 
reason for changing tire so- 
called dual support system, by 
which universities receive their 
main funds for research partly 
from the University -Grants . 
Committee and partly from the 
research councils. 

The report, -.recommends 
various ways in which institu- 
tions could improve the organ- 
isation of their research; in- 
cluding thorough examination of 
the practice of gjving academic 
staff job tenure until retirement. 

The problem of creating room 
for young academics as new 
blood for research activities “ is 
one of the most important that 
universities have to solve in the 
I years ahead.” 

Institutions should form 
research committees responsible 
for directing the fhnds available 
to projects with the best pros- 
pects of Mgb-quaiity results, 
and take the initiative in co- 
operating with other institutions 
in joint projects. 

“ Research is almost always a 
very competitive activity, 
where the prizes go to those who 
show the most imagination, and 
who are able to employ it 
rapidly and effectively. Second- 
class research is next to worth- 
less, and we would encourage 
all those who bear responsibility 
for tiie support of research to 
bear tihs in mind” says the 
report 

Contract work for industry — 
totalling less than £15m a year 
— was of great benefit to both 
parties and links with com- 
panies should be strengthened. 
Support of University Scientific 
Research; Cmnd 8567. HUISO 
£4.35. 


INTERNATIONAL SEMICONDUCTOR MARKETS 


of Japan’s share ‘to slow 


BY GUY DE fOMQUIERES AND fASOit* CRISP 

THE RECENT -rapid expansion 
♦of Japan’s share' of international ’ 
semi-conductor markets- is '-i 

likely to slow during the next f® " ' v 

' "few years -and will probably be 
tied more closely to the growth 
of Japan’s own consumption of V 3 , ; 

electronic components, Mr ffirV" 
Gordon Moore, chairman * of 
Intel, said yesterday. ‘ 

He told ' the Financial. Times 
1 World Electronics - Conference ■ 
in London that Japan’s penetra- 
tion of international markets so XJ&pM 
far had been based largely on 
sales of microchip memories and JaB SPlsp jS 
bad been helped by good timing. 

But if it were to continue. 
expanding its overseas business 
at the same rate, the Japanese . 
semiconductor industry would 
have to compete across a far Hc|£||p|i 
broader range of preducts and 
invest massively in Jhe 
development of systems com- Rsil- 
prising both software and com- 
ponents. . . 

. Mr Moore said that th'e U.S. 

industry’s greatest advantage in W pIlM lg 

competing against Japan lay in - 

the recent resurgence of high- 

technology start-up companies £££ ,* J /‘ 

founded by entrepreneurs and 

financed by venture capital, 

These would provide, the basis 
for much U.S. innovation m the 
future. - • ... . . 

Mr. Taiyu K Obayashi, chair- 
man ' of Fujitsu, said . Japan From left 
could now riaim to be a pace- chairman < 
setter in the, production of 
reliable electronic components 
and equipment notably own- the vast 
puters, telecommunications and 
consumer products. “E for ° 

But Japan did not yet excell" S d “ ro?K 
in creativity and continued to 
look up to the achievements in 
this field of engineers end 
s dentists in the U.S. and. 

Europe. Japan was, however, som f • 
making a major effort in 
advanced research and develop- 
ment and hoped in time to be 
able to make important contri- 
butions to -technologkai innova- 
tion. 

M Alain Boublii, technical 
adviser to the French President. ' 
said it was n otonger possible 
for any one country to claim 
technological leadership in 
electronics or in any other • 

field. • 

• . But France recognised that 
mastering technological pro- 
gress was a decisive factor in . 
economic success which would 
also enable it to co-operate entered the in 
more widely with other Indus- ing industry i 
triafised countries and with 'the and many fa 
Third World with which the carving out 
French Government was nego- in the marke 
ttiating agreements on tech- dustry had gi 
nology transfer. it would prob 

M Jacques Haisourouge, today to star 
senior vice-president of IBM,, pany which < 



From left M. Alain Boublii, technical adviser to the French President Mr Taiyu Kobayashi, 
chairman of Fujitsu, and Mr Gordon Moore, chairman of Intel, at QteFliameial Times World 

Electronics Conference - * >. 7 


said' the vast expansion of appli- 
cations for new types of infor- 
mation processing systems 
would provide plenty of busi- 
ness opportunities for large 
and small companies. 

During the last 10 years, 
some 10,000 companies had 


FINANCIAL TIMES 



CONFERENCE > 


entered the information process- 
ing industry in the U.S. alone — 
and many had succeeded by 
carving out specialised niches 
in the market Indeed, the in- 
dustry bad grown so large that 
it would probably be impossible 
today to start a big Dew com- 
pany which could compete in 


every sector of it 

Dr Atsuyoshi Ouchi, senior 
executive vicepresident of Nip- 
pon Electric, said huge changes 
in telecommunications techno- 
logy had brought within reach 
a new world system of informa- 
tion and communications which, 
challenged traditional concepts 
of political holders. 

But social and economic in-- 
stitutions were adapting' slowly 
to these changes. More must be 
done to remove barriers be- 
tween national teiecomgmmica- 
tions-markets and to encourage 
international co-operation^ ; 

The challenge, of creating a 
strong European electronics in- 
dustry means there is no place 
for “ home country ” politics 
warned Mr L. Mercuric, manag- 
ing director of Olivetti’s com- 
munications group OLTECO. 

To meet the .electronics chal- 
lenge, Europe needed to capi- 
talise on its strong areas and 
take advantage of the size of. 
the market which Europe could 
provide. • . . 

European strong points were 
in three areas, said Mr Mer- 
curio. 

• Small distributed data pro- 


cessing systems and electronic 
typewriters: which form .an im- 
portant basis far office automa- 
tion. , - 

fe Telematics products and ser- 
vices and the. evolution of tefle- 
- commmiicatipns; Europe already 
played a leading international 
role, in telecommunications and 
if it took the right actum it' 
could retain that leadership in 
new services. ' ... 

• European knowledge In sys- 
tems integration. This job, fit- 
ting together products and 
applications, has a high techno- 
logical content and win conse- 
quently be highly remunera- 
tive. 

“The survival of the Western 
European electronics industry is 
at stake as long- as there are 
a number of companies which 
behave relatively autonomously 
on the market or, in a number 
of cases, even adopt a strongly 
nationalistic attitude ” said Mr 
C. J. van der Klugt, vice-chair- 
man of Philips Holdings. ' 

Faced with Japan’s combined 
power. Europe stiM J . adopts a- 
fragmented stance although 
there are indications that 
changes are on the way he said. 


BBC sued 
by Liberian 
oversbips 
programme 


' law Gxjm CbrrepMvM 

THE; BBC, far bring .acted hy a ’ 
Liberian shipowner over a- tele- 
virion programme about dri p* 
operating under flags of con- 
venience. .. 

•The programme, Rough 
Trade, was ' to- .- have ben. 
screened Jh -toe Brass Tads 
Reports ' series on May. 20. It ' 
was postponed at the last minute . 
after a writ had foeen issued, 
i The Ttgfel action was taken 
by Searose Maritime, of Liberia • 
(owner - of . the vessel. . Dyna, 
winch operates under the Pana- 
manian. 'flag?).’ Bantahey Mari- 
time, of Liberia, the veasefa 
charterer, and three other cans-' 
panfes, ode hased fu New York 1 
and two in London, which - are 

the Dyna>agents and maaagere. j 

'■ The , companies are ctahnh^ • 
fom for -afteged tteapare on 
theDyniri: 'Greenock, Scotland, 
In ApriL^^nd seek titg, varied 
injunrtabns to restrain the use ' 
of fifan, photograph* And Mtmd- 
- trick ‘token or recorded 4n toe 
-vessel. • •' - ■' V’-' " 

AJjter. a private hearing to the 
High : Court oh Tuesday, the 
case was adjourned until not 
week witfcduf.no order made, 
the BBC tesving agreed not to 
broadcast the programme unffl 
the legri ^problems have been 
resolved.' ' . ^ 

• The Oommerrial Court wffl 
role sobs on whether a raid, . 
by mien aimed ' with knives on - 
a ship anchored off fee Bangla- 
deshi port. of Uhitta«an& was . 
an act of piracy againstwfakh 
the vessel’s owner was insured. 

Mr Justice Staugbton yester- 
day reserved his. judgment fax 
what is regarded a»« test out 
oh marine .insurance. 

The raiders - stole .95,754 
(£3400) worth- of gehr from fee 
ship, the Anfireos Lemos, before 
being biased off by its crew. 

Ah insurance claim by fee 
vessel’s owners, Athens Mark 
time • Enterprises Corporation, 
which . contended that the Joes 
resulted frtftn an act of phaegr. 
was rejected iy tbe under- 
writers, :tho" Hellenic Mutual 
I War '. ■ Risk. Association 
(Bermuda^ wftfich asserted feat 
the loss was' through .theft and 
not covered by zts rules. 

' • The raid occurred . in June 
1977 in .Bangladesh territorial - 
•vraters. ! 

.Mr Mark Saville, QC, flor fee 
-association, s&i£ that the raiders 
did not count aspirates because 
the incident had taken plage 
within territorial waters. 




results 



Grins in international business 


In 1981, a year characterized by continued fluctu- 
ations on international capital markets and lackluster 
economic performance, Hypo-Bank achieved consider- 
ably improved results compared to the previous year. 

Bayerische Hypctheken- und Wechsel-Bank AG, 
Germany's oldest publidy-quoted. Qoint-stoc^ bank; 
increased its balance sheet total by 4B% to more than 
DM 60 ttHioa Group assets rose by 6l4% to DM 89 l 2 bil- 
lion, with earnings up 17 3% to DM 76.6 million. 

The Bank's international business continued to 
develop favorably. Foreign lending, especially export- 
related financings, showed satisfactory gains wife an 
again increased proportion of loans going to the highly 
industrialized economies. Documentary business, 
foreign exchange transactions; and international pay- 
ments also posted improved results over 1980. 

In its tenth yearofEuromark^: activity, Hypo-Bank's 
Whdlyowned Luxembourg subsidiary, HYPOBANK 
INTERNATONALSA, increased Its balance sheet total 
by 18% to lirs.114 billion and substantially strengthened 
its services to private customers in the areas erf deposits, 
securities, precious metals, and investment counseling. 

The New York branch, which aocounte'fora sig- 
nificant part of the Bank's foreign business, -expanded its 
activities, primarily with corporate clients. In Its first full 
calendar year of operations the London branch, which 
has “recognizBd bank" status, successfully broadened 
Bs eflent base and service capabilities. 

To strengthen its traditionally dose links wife fee 
ttaRan economy, the Bank opened a re pres e ntative office 
in Milan. In early 1982, representative offices were 
Opened in Hong Kong and Abu Dhabi 

Through its own offices, partnership in ABECOR, 
fee world’s largest banking group of its kind, and a 
mobile team of banking professionals, Hypo-Bank's ser- 
vice potential spans the globe. 

For your copy of our 1981 Annual Report please 
contact our International Department Theatinerstrasse 11, 
D-8000 Munich 2, Tel: (089) 2366-1, Telex: 05-28 6526-27, 
SW1EEHYFODEMM. 


HrghtigbtsofourconsoSdated 
Balance Sheet for1981 - in million DM 


Total assets consofidated 89239 

(Tolal assets parent company) 60060 

Totalloans 

71,042 

General tanking 

30,660 

Mortgage banking 

-40,382 

Total deposits 


and kmg-term BabflBes 

85J355 

General banking 

46£17 

Mortgage banking . 

39,738 

Capital and reserves 

1,791 

Share capital 

477 

Reserves 

1,314 


n 



BttERJSCHE HYPCnHHKEN- UND WECHSa.-BANK 
AKnENGES&lSCHAFT 


tAicclelM&kznfangmj&efmeU Sto^eU Shatfifam 


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saving control systems, 
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major issue. A key to reduc- 
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is advanced technology 
based on micro-electro- 
nics. It isthis technology 
Honeywell offersio 
commerce and.industry 
throughout the UK. and 
Ireland. It can reduce 
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15 to 30 % - no matter how 
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time is several times faster 
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controls. Amortization of 




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Savings go on and on. - 
Honeywell advanced 
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For moife information: 
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Honeywell House, 

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TeL(0344) 24555 ext 581 


Honeywell 







Financial Times Thursday June 1ft. 1982 . . 


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**. 531 


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. ' The HOPE, a car in the true Lancia mould. 



1 The new 2 litre HOPE is 


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ft) 


Financial Times Thursday' June ; ft) I9S&; 


UK NEWS 


MacGregor 
says more 
BSC 

jobs at risk 

By I to Dawnay 

A FURTHER J 7.000 jobs are at 
risk in the British Steel Cor- 
poration. Mr Ian MacGregor, the 
corporation’s chairman, has 
warned. 

He told dele sates at the Elec- 
trical and Plumbing Trade 
Union conference at Scar- 
borough that only three out of 
every four jobs in BSC could be 
regarded as secure- 
“ If total employment goes 
down to as low as 75.000, then 
we will have much greater job 
security." he said. 

Until yesterday BSC had said 
only that it intended to reduce 
the current workforce of about 
100.000 to 92,000 by the end of 
March I9S3. 

Mr MacGregor said that any 
decision on further cuts would 
depend on the pressure of 
market forces on the industry 
over the next few years. But. be 
added. “ we feel we can guaran- 
tee three out. of four jobs.” 

The chairman's remarks came 
a day after reports that BSC 
was reappraising its plant con- 
figuration in the light of 
continuing weak markets and a 
sharp rise in imports this year. 
• This has been interpreted as 
meaning that one of the corpora- 
tion's five main bulk steelmaking 
plants could be in jeopardy. 
Attention focuses particularly on 
the strip mills at Ravenscraig 
in Scotland and Port Talbot and 
Llanwem in South Wales. 

Mark Meredith writes: British 
steel’s operations in Scotland 
are among its most vulnerable 
in any further rationalisation, 
even though these plants are 
breaking records. 

Their vulnerability arises 
from the loss of the main local 
markets. The shipping industry 
has contracted hugely as has the 
demand for sleel for cars after 
the closure of Talbot's Linwood 
works in 1980. 

Mr MacGregor last year made 
no secret of his disappointment 
with the performance of steel- 
works in Scotland and said he 
wanted improvements in pro- 
duction. 

Setbacks 

. Production at the Ravenscraig 
■integrated steelworks has im- 
proved steadily after setbacks 
caused by bad weather, the rail 
strike and a strike in March 
over working practices. 

The factory produced 125,000 
tonnes by continuous casting in 
May. its highest output by this 
most modern of steel processes. 

Continuous casting, part of a 
£250m modernisation pro- 
gramme, was completed in 1979 
and about 85 per cent of steel 
is produced by this method, 
which bypasses the more costly 
and labour-intensive ingot pro* 
cess. 

Ravenscraig s continuous cast- 
ing record is a healthy one but 
has often been matched by per- 
formances at British Steel’s 
other plants in the south that 
have comparable capabilities. 

Cost-saving programmes to 
reduce energy consumption and 
improve yields in steel produc- 
tion are continuing at Ravens- 
craig and at other steelmaking 
operations in Scotland. 

- BSC has also been concerned 
.at losses incurred by the Craig- 
neuk works, part of its forges 
and foundries group, where 
1,000 are employed. 

Robin Reeves writes: Mr 
MacGregor had high praise last 
year for the performance of 
BSC-’s Llanwem plant. He said 
its "consistent performance and 
its impact on reducing costs is 
exactly what was needed to 
stimulate the search for new 
markets." 

Steel production at the South 
Wales plant in the year ending 
last March totalled 1.885m 
tonnes, which was only 158,000 
tonnes short of the record in 
1971-72. This output was 
achieved in spile of a halving 
of the plant's workforce in three 
cutbacks over the past two years 
to 4.446. 

Record 

Llanwem also made a slight 
profit last year while Pori Tal- 
bot made a slight, loss and 
Ravenscraig a substantial loss. 

In April this year Llanwern's 
productivity reached a record 
of 4.08 man hours per tonne, 
a figure well below that of any 
other works in the UK. The 
BSC average is 8.4 irrpL, Port 
Talbot's about 5.7 and Ravens- 
cralg’s more than six. 

The transformation in pro- 
ductivity at Llanwern has been 
highlighted in a recent Conser- 
vative Party political broadcast 
a s among the Government’s 
major industrial success stories. 

The plant also has a reputa- 
tion for producing top quality 
steel for the motor industry. 
The works was chosen, along 
with Hoogovens of Holland, to 
produce the side panels for the 
Austin Metro. 

It has since largely displaced 
Hoogovens and is currently also 
supplying steel to General 
Motors' West German plants.' 

If Llanwem were to dose it 
would mean not only the loss 
of a further 4,500 steel jobs 
but would also threaten more 
than 5,000 jobs in the Welsh 
mining industry. . 

South Wales miners, having 
brought the coal industry to a 
standstill last year over closures, 
would be unlikely to stand idly 
by if further shutdowns were 
considered. 


Industry wants bigger oil tax concessions to boost development 


BY RAY DAFTER* ENERGY EDITOR 


SIR GEOFFREY HOWE, 
Chancellor of the Exchequer, 
has announced hew tax coin 
cessions for the offshore oli 

industry worth some £5 5m 
over the next two financial 
years. 

It Is the second time In 
three months that the Chan- 
cellor has reduced the indus- 
try's overall level of taxation. 

In the Budget Sir Geoffrey 


‘ put forward changes in the tax'' 
package that should reduce 
Government take by about 
£140m in the two flnanoiaJ 
years between April next year 
and spring 1985. “ 

-But oil companies main- 
tained last night that given a 
. total tax bill of well over $6bn 
annually, the Chancellor had 
offered insufficient relief to 
encourage development - of 


small, ntarginally-economie 
fields. The industry will press 
for more fundamental -tax 
cats. 

Sir Geoffrey told ’ -the 
Commons yesterday that he 
was making five amendments - 
to the -total taxation system, 
they would relate mainly to 
Petroleum Revenue Tax, 
Advanced- Petroleum Revenue 
Tax and Corporation - Tax. 


The changes would ease' some' 
particular problems experi- 
enced by the industry. 

“Our objective is that the 
proposed', structure should 
provide a secure and stable 
basis for future develop- 
ment,** he' said, adding that, a 
greater reduction In taxation 
could not'be justified. 

He pointed oat -that since - 


the Budget in March, a time 
of considerable turmoil in the 
oil markets, oil prices had 
risen, at least for the time 
being. He implied that the 
industry would benefit from 
those price rises. 

Under the proposals 
amnirnifwl . yesterday the 
industry’s tax fain is expected 
to be cut by fiS5m in 1983-83 


and 20m in .1983-84. The 
savings could , he greater 
towards the end of the- 1980s. 

The Budget tax- proposals 
reduced the Government take 
fay about £70m in each of toe 
cnflTifiai years 1983-84. and' 
198435, and Hie. marginal 

rate .of North Sea taxation 
from 90.3 per cent to 89.5; pfir 
cent - ' -. ‘ 


Small step in right direction, say 



men 


BY RAY DAFTER 

" A VERY SMALL step in the 
right direction " was the way 
Mr George Williams, director- 
general of -the UK .Offshore 
Operators' Association greeted 
news of the latest North Sea oij 
lax concessions. 

Sir Geoffrey Howe, Chan- 
cellor of the Exchequer, out- 
lined five proposed tax changes 
yesterday which should save 
the industry about £35m in the 
current financial year, and some 
£20m in 1983-84. 

With tax reductions arising 
from measures announced in 
the March Bulget, the changes 
should lower the oil industry’s 
tax bill by some £12Sm over the 
next two financial years. • 

Such savings should be seen 
in the light of total North Sea 
oil and gas revenue, some 
£6.2bn in this financial year, 
according to Treasury estimates, 
and as much as £Sbn judging 
by a 208-page report* published 
yesterday by Scott Goff Han- 
cock and Co., the stockbrokers. 

To some extent the dis- 
crepancy arises from varying 
views of oil prices and monetary 
exchange rates. 

So far the oil industry has 
failed to convince the Govern- 
ment that It is seriously over- 
taxed. though the Chancellor has 
agreed that joint Whiteh all- 
industry gatherings should 
review specific aspects of taxa- 


tion policy. The first meeting 
is due in a few weeks. 

Sir Geoffrey told the Com- 
mons that the ..industry's 
demands for a substantial reduc- 
tion in oil taxation could, not 
be justified. "I believe there 
are adequate returns on North 
-Sea projects . at the current 
broad levels of taxation.’* 

It is understood, that oil com- 
panies asked for the banc rate 
of Petroleum Revenue Tax to 
be pegged at 70 .per cent 
instead of the 75 per cent pro- 
posed from next Jghpary 1. 

They called for the' planned 
Advanced Petroleum Revenue 
Tax* (APRT) to fie scrapped as 
soon as’ possible and for the 
APRT to be allowed against 
Corporatifn Tax. These 
measures would have cut the 
industry's tax bill by several 
hundred million pounds a year. 

While discounting industry 
claims that taxation harms off- 
shore development prospects. 
Sir Geoffrey has conceded that 
“some mitigation <ff the bur- 
den” is appropriate to meet par- 
ticular problems. As a result 
he • has proposed five, modest 

changes: 

• No field will be liable to 
APRT for more .than five years. 
APRT. to be Introduced* on 
January 1, to be charged at 20 
per cent on gross revenues, less 
an allowance of lm tonnes a 


year of oil production. The pay- 
. merit limit is expected to pro- 
vide the industry with signi- 
ficant tax savings in the late 
1980s. ' 

• If a field is so unprofitable 
that APRT has not been set off 
against the ordinary profit- 
related ' Petroleum Revenue 
TaX within five years, the 
amount not set off to be repaid 
immediately rather than at the 
end of the field's producing life 
as proposed in the Budget 

• APRT Is' also to be allowed 
as a deduction in computing 
“payback” for. ' Petroleum 
Revenue Tax purposes. This 
move will prolong availability 
of major Petroleum Revenue 
Tax reliefs and should be par? 
ticulariy helpful to the less 
profitable fields. 

•' Proposals for smoothing 
instalment payments of Pet- 
roleum Revenue Tax to be 
deferred until the second half 
of 1983, a delay of 18 months; to 
ease the burden on working 
capital. • Companies - will .be 
allowed to spread payments due ' 
on September 1 1983 over five 
moodily' instalments. 

• Finally, the Government pro- 
poses to backdate by two years 
Corporation Tax relief for 
certain losses and other ex- 
penditures . incurred by com- 
panies with North Sea interests. 


ESTIMATE OF UK OIL AND GAS TAXATION*' 


Financial year 
03 production (m b/d) 

Gas production (bn cubic feet/ day) 
Government Revenue (£bn) based on 
Oil pricer SI per barrdt 
$35 per barrel 


1980/81' 

1981/82 

1982/83 

1983/84 

1986/85' 

L64 

138 

. . 2.10 

- 235 

’ Z50 

339 

335 . 

. 3.90 

;* .MO;. • 

Aio.j- 

350 

630 

7A0 ’ 

. . *9j60 

1L50 . 

390 

- . 630 

' 8-10 

;11 

13S0 . 


* Based on exchange rate of $175 = £l in 1982/83 and following years. ' v ' ■ 

f $31 assumed until January 1, 1983; thereafter price escalated at an annualised rate of 10 per cent 
compounded quarterly. • . ' 

$ $35 assumed from July 1, 1982 aid escalated at 10 per cent per annum from January 1 ; 1983- . - 


Source; Span Goff Himtock St Co. 


Though some of these 
changes were made in response 
to the offshore industry’s repre- 
sentations, particularly those 
relating to APRT, oil companies 
will continue to press for more 
fundamental changes in the 
Budget next spring. 

In its new report Scott Goff 
Hancock says that the Govern- 
ment needs to make North Sea 
taxation more favourable to 
the industry to ensure that the 
next generation of . fields is 
developed and oil self- 
sufficiency maintained into the 
1990s. . . 

Oil production, expected to 
be 2.05m barrels a day this year, 
could fall to less thafl lm b/d 


by the mid-1990s it said, if new 
fields were not discovered and 
developed. Fields were becom- 
ing harder to find. It took an 
average of 12 exploration wells, 
costing about £60n£, to find a 
single commercial field. 

The brokers have made new 
estimates of the value ' of State . 
off and gas assets 'up for sale. 

They value British Gas -Cor- 
poration’s 59 per -cent stake in 
Wytch Farm oilfield, Dorset, at 
between £165m and over £2 00m. 
depending on reserves and oil 
price assumptions. 

In a similar vein, they value 
the corporation's interests in 
North Sea oilfields, also to be - 
sold, at between £2 68m and 


£476m. . 

British National Oil Corpora- 
tion's OR assets are valued at: 
£1.6bn, some £400m. less than 
in 1981, . when oil prices were, 
higher. ■ f . ■ 

Some 51 per cent of BNOC’s 
oil' exploration and production 
business is doe to be offered 
for sale later this year, accord- 
ing to the Government.. 

Scott Goff Hancock warns 
fhat ait a time of low.oai prices, 
ministers could be accused of 
selling .the country’s wealth too 
cheaply. 

* UK Oil and Gas Review;' Scott 
Goff Hancock and Co., Salis- 
bury House, London EC2. . 


Engineering aid likely to restart 


BY JOHN EUiOTT, INDUSTRIAL EDITOR 

THE Department of industry 
is likely Lo try to -reopen its 
small engineering firms invest- 
ment scheme later this year 
after it bas studied the effect 
of £30m of aid now being 
allocated to . about 1,500 
companies. 

The scheme was ■ closed on 
May 28. after. being open for 
only eight ' weeks, because the 
department was overwhelmed 
by aid applications. 

The Treasury refused . a 
request from the department 
for fresh funds. Originally £20m 
was allocated from the £130m 
innovation package provided for 
the department in the Budget. 

A further £10m was then added, 
partly from this package and 
partly from the department’s 
general public’ spending 
allocation. 

Industry ministers have come 
under . pressure from machine 
tool manufacturers and Conser- 
vative MPs to extend the 
scheme but have not been able 


to .find any more surplus cash 
from’ these sources. Now they 
will - have to argue for • fresh 
funds in the annual review of 
public spending during the 
next few months. 

In the meantime the depart- 
ment-will survey the effect of 
the scheme, particularly check- 
ing that- the aid has generated 
fresh investment which would 
not have . happened otherwise. 
* —The -scheme- -provides -giants 
of 33} per cent of the purchas- 
ing or leasing cost of invest- 
ment by small businesses in 
computer numerically con- 
trolled machine tools. At least 
some of the companies which 
have applied are likely to be 
fusing* the .fpnds for iifvestments. 
which would have-been made 
Vdtfaout :xpy ' state 1 help. 

The department will want to 
discover . the extent of such 
ihalpractices before approach- 
ing the Treasury. 

: tyto, s£ ‘ of the . £130m innova- 


tion package announced in the 
• Budget bas how been allocated. 
The most relent announcement 
involves a £3m grant. to the 
Design Council for consultancy 
work, making companies aware 
of the importance of design. 

The £130m package was coo- 
. rider ably smaller than the 
department’s " total . budget 
request of £250m and a substan- 
tial package is likely in be 
. assembled- . — by - — industry 
ministers soon for inclusion in 
next year's spending plans. 

•* " But the department's success 
in obtaining: extra funds for 
high technology areas will 
depend on its process in 
reducing large-scale aid to 
-industries like steel and BL. 
Mr Patrick Jenkin,’ Industry 
Secretary, has said he 'wants- to 
progressively switch the 
.balance of his department’s ex- 
penditure— £2bn . this year — 
away from supporting these 
problem areas and into high 
technology and new businesses. 


Ever Ready to transfer HQ 


BY LYNTON McLAIN 

BRITISH EVER READY, the 
battery and electrical equip-, 
merit group known formerly as 
Berec. is to move its Ever 
Ready (GB) headquarters from 
Whetstone. North London, to 
the group's main manufactur- 
ing centre at Tanfield Lea in 
County Durham, the company ' 
announced yesterday. ■ 

At the same time. British 
Ever Ready announced that 15fl 
staff are to be made redundant ■ 
at its Cramic Engineering sub- 
sidiary at Banbury.’ Oxford- 
shire. The company blamed a 
lack of engineering work. 


’ • The trades unions -involved . 
atv.the . works ' have been' -con- 
sulted and talks have started 
with the employees who are to 
lose their jobs. ■ 

British : Ever - Ready was 
acquired by the Hanson Trust 
for SlOOm last Christmas. 

British Ever Ready is * to 
provide assistance to those em- 
ployees who are, able to move 
'to County Durham. Neverthe- 
less, “it is expected that ther.e 
will be a number of redun- 
dancies ,at Whetstone," the 
company said. 

■ Other changes announced 


yesterday include the transfer 
•of the group technical centre of 
"' British Ever Ready from Tot- 
tenham, north London, to ■ the 
Tanfield Lea site, with more 
redundancies. After, the move 
of the Ever Ready (GB) head 
office the remaining functions it 
the Whetstone headquarters 
will be decentralised. 

Berec, as it was at the begin- 
ning of March, announced its 
derision to close a research 
division which was formed only 
three years ago. 


Backing for 
De Lorean 
rescue plan 

By John Griffiths 

MORE THAN 170 creditors of 
tiie De Lorean sports car com- 
pany In Belfast yesterday gave 
unanimo us backing to a pro- 
posed rescue- by a unnamed 
consortium of UR investors. 

Ifae chairman of the credi- 
■tOTS’" committee said last night - 
that the consortium would re- 
ceive “all possible help” from 
the committee, which repre- 
sents oyer 200 suppliers based 
both in the UK and on the 
Continent. 

Mr. John" Putt said one of 
the two receivers, Mr Paul 
Shewell, had been told that 
this support would’ not be re- 
viewed until the end of July, 
thus giving the receivers con- 
siderable room to manoeuvre. 

. Meanwhile the committee 
would put up strong opposi- 
tion. U any attempts arose 
from other Individual com- 
panies to seek the Belfast 
company’s liquidation. 

Despite the end-Jnly time 
scale given to Mr SheweU, 

, there appeared to be some 
confidence, that a rescue 
operation could be completed 
by the end of this month. 

A major hurdle was cleared 
last week , when the consor- 
tium ■ received satisfactory 
assurances from Mr John. De 
Lorean, -through Sir Kenneth 
Cork, the ether joint receiver^ 
that his U.S. sales company 
could distribute and market 
the cars. 

Sir Kenneth said this paved 
the way for the ’consortium; 
if it did decide to proceed, 
to arrange funding to be 
drawn from City financial in- 
stitutions. 


Docks Board, C. Y. Tung 
in Southampton venture 

BY HAZH. DUFFY, TRANSPORT CORRESPONDENT . . 


THE British. Transport Docks 
Board and the C.Y. Tung ship- 
ping group have formed a joint- 
venture company to operate a 
new container terminal at the 
port of Southampton. C.Y. Tung 
winch will be the majority 
shareholder, will invest at least 
£5m in equipment for the ter- 
minal. 

■ The joint-venture approach is 
the first to be undertaken by 
the state-owned boards. It will 
be the second container ter- 
minal venture in the UK for 
C..Y. Tung, which last year 
opened a new terminal at 
Felixstowe. It also has other, 
similar joint-venture operations 
with dock authorities in- the 
U.S. and the Far East. 

The Southampton move is 
subject to agreement with the 
work force on working systems 
and procedures. Although the 
C. Y. Tung group -emphasised 
yesterday that tile Southampton 
developmvit will not reduce its 
commitment to the Felixstowe 
terminal, there is still some dis- 
quiet on the part of the unions. 


The company expects that, once, 
agreement has been ■ reached 
with, the workers, operations 
should start at the Southamp- 
ton terminal with existing 
equipment, which will be dis- 
placed progressively. . . 

. Labour disputes . disrupted 
handling in- Southampton port 
for most of Iast*year. A fresh 
outbreak of troubles occurred 
last month, but seems to have 
been resolved for the moment 
The BTDB said: yesterday that 
the new partnership with C. Y. 
Tung is expected; to bring 
Southampton port “ consider- 
able advantages, to the benefit 
of customers, employees and 
tiie Docks Board’s buginesp as 
a whole-”- - ' ’ 

Both parties to the agreement 
were coy about the markets that 
they expect to tap through the 
new; terminal, except to say 
that discussions a£e befaing held 
with several international 
shipping lines- The C. Y. Tung 
group, winch has one of the 
largest merchant fleets, will hot 
have preferential treatment. 


Ministers 

examine 

borrowing 

forecasts 


THE" GOVERNMENT borrowed 
£1.1 bn-. in, -May,, bringing to 
£L9ba. the total central govern- 
ment borrowing requirement for 
the- first "two months ot -the 
financial year. 

/.•The ;-Govtiniineat’s consrii- 
dafed- fund ’ 'received ; £tl.6bn 
■revenue in April and May, com- 
pared With .an official forecast 
of £S2-9bn- for the whole of the 
current financial year, according 
:to '•”• figures . ^published by - . the 

Treasury yesterday. ; .. 

- . Central government borrow- 
ing requir ement was £5 .2 bn in 
the first two months pf last year, 
1981-82, but this wag inflated 
greatly by the effects olf the civil 
servants’, strike at the time. , 

It is thought generally to be 
too early in .the year, to estimate: 
whether- central government 
borrowing is. on target to "reato 
the Budget estimate." of £9.3bu 
by the-end of the financial year. 

Public - sector borrowing last 
financial year was about £2bn 
below the target-set at the time 
of - the 1981 Budget. Ministers 
are Bow looking -at ways of 
improving estimates of the 
trend of government borrowing.- 


Liverpool cable TV study 


BY JAMES MCDONALD 

MERSEYSIDE Cablevisjon is 
carrying out a £200,000 
feasibility study to decide 
whether cable television would 
be commercially viable in the 
region if the Government re- 
moves most of the restrictions 
on such systems. 

The consortium of 18 lead- 
ing - companies and local' 
individuals has proposed a 
system to relay broadcast 
channels. With additional pro- 
grammes and interactive 


channels. They would include 
programmes for the community, 
such as educational and/ local 
news, entertainment, : films, 
sport, childrens’ programmes 
and teletext 

the participants in the' con- 
sortium — either by funding it 
or by helping to develop it— 
include: Flessey, Pilkington, 
■BICC, British Tplecom, Little- 
woods and the Liverpool Daily 
Post and Echo. ’ 


Plessey eyes the glittering prospect of a U.S. market 


THE U.S. market has long 
offered foreign telecommunica- 
tions manufacturers a glittering 
prospect. It is the biggest, tech- 
nologically raosl sophisticated 
and fastest-changing market in 
the world. 

It is also more open to com- 
petition from outside than the 
tightly-guarded 'national mono- 
polies in most of .Western 
Europe. 

Various non-American com- 
panies arc already selling and 
making equipment in the U.S. 
They include Canada’s Northern 
Telecom, Nippon Electric of 
Japan and ■ Sweden's L.M. 
Ericsson. Now Britain’s Plessey 
is considering establishing a- 
beachhead by acquiring Strom- 
berg-CarJson. one of the oldest, 
and largest . independent 
U.S. telecommunications manu- 
facturers. 

Until now foreign interest 
has centred chiefly on sales of 
equipment likp nrlvate branch 
exchanges (PBXs). terminals 
and other subscriber apparatus 
which could be supplied 
directly -to private customers. 
That is because much of the 
markel for public exchances 
used by telephone . operating 
companies in the- U.S. has- 
remained the preserve of nne 
company American Telephone 
and Telegraph. 

AT&T, through its 23 local 
telephone operating sub- 
sidiaries and affiliates, serves 
more than SO per cent of U.S. 


Stromberg-Carlson’s need for muscle 


BY PAUL BCTTS IN NEW YORK 


STROMBERG « Carlson, the 
company which Piessey might 
acquire from ‘./.General 
Dynamics. Is one of the three, 
leading suppliers of digital 
switching equipment to 
independent- telephone com- 
panies to the' U&*' but if has 
been a- considerable burden ■ 
on the balance ’ sheet at 
General Dynamic’s in recent 
years. 

The telephone, equipment 
manufacturer, ~ 'based - at-’ 
Orlando. Florida, with four 
plants in the - U.S.. Is no 
lunger regarded as the strong 
element It was several years 
ago in the increasingly com- 
petitive u.S. telecomnnmica- ' 
tioos market - - • 

. . Mr -Bradford Peery. Tele- ■ 
communications industry ana- 
lyst for the WaD Street firm 


of. Paine Webber Mitchell 
Hutchins, said Stroraberg- 
Carlson needed “ additional 
muscle to survive on a long- 
term basis. * He said Plessey 
could provide the necessary 
financial muscle, as well as 
broadening the company’s 
product .base. At the same 
. time. Plessey could provide 
Stromberg-Carl son with ac- 
cess to.. foreign markets and 
possibly greater market pene- 
tration in the U.S. 

Stremherg is by-' far the 
largest of" General Dynamic’s.-; 
three telecommunications 
divisions, which include 
American- Telecommunica- 
tion*. a- supplier of telenhone 
pouimnent and accessories to 
the Bell sys te m and to various 
independent telephone com- 
. panics, and General Dynanrics- 


Commnnications. also a sup- 
plier of telecommunications 
equipment. . 

Although General Dynamics, 
a company with -$5bn . 
(£2. 79 bn) in sales last year, 
has pumped substantial 
amounts of money into 
research and development in 
the telecommunications busi- 
ness. it has been unable to 
make It perform adequately. 
Indeed, that segment - lost 
S27m last year, $Z0m in 1980- 
S2m in 1978 and $12m in 
197'L.It.madea. profit oLSlSn 
in 1979. a year when General 
Dynamic as a whole reported 
net earnings of $276mr .-*■ 

The company bas continued 
' to be unable to stop losses in 
its telecommunications busi- 
ness, which repotted a deficit 
- of $18. 3m- on sales -o$$7(L2m- 


in the first quarter of this 
year. Analysts say that most 
of the losses came from 
Stroraberg. General Dynam- 
ics’ telecommunications busi- 
ness reported sales of $305m 
last year. 

For some time, General 
Dynamics Ss understood to 
have been considering aband- 
onment of the telecommuni- 
cations business. It. is now 
expected to died . its other 
telecommunications busi- 
nesses. The com p an y lias 

been -streamlining' its oper- 
ations fay emphasising its 
military -sales, which account 
.foe is modi as 85 per cent 
of revenue. 

General Dynamics acquired 
Stroniberg-Carleon in the 
mid-fiftie& .. 


subscribers. The operating 
companies have beed- largely & 
captive market for sales -of 
public - - telecommunication^ 
equipment by Westeih Electric. 
AT&T’s vast manufacturing 
subsidiary- 

But this cosy relationship 
between different branches of 
the AT&T empire appears set. 
for dramatic change because of • 
the historic anti-trust settlement 


AT&T reached with the U.S. 
Justice Department in January. 
' The settlement, designed to 
end a seven-year government 
case Which sought the break- 
up of AT&T, requires it to dis- 
pose of its local operating 
affiliates within IS months. It 
would also ' permit AT&T to 
offer unregulated communica- 
tions like computerised infor- 
mation services. 


In theory, at least, the settle- 
ment would free the operating 
companies which .now belong to 
AT&T's Bell System-to purchase 
equipment from any sources 
they chose. The local companies 
still rely chiefly on older 
analogue exchanges. 

In the next few years they 
are expected to re-equip them- 
selves on a grand scale with 
the latest generation df- digital 


exchanges which -use all- 
electronic technology. Sales of. 
digital equipment in the U.S. 
are already nihnSng.it about" 
$lbn (£561.2m) a year. 

Plessey clearly hopes that 
these Impending changes vrfU 
open up the U.S. market to 
System X Britain's digital 
exchange family. .System Xhas 
been developed at a total cost 


of about $200m by British 
Telecom in collaboration with 
its three principal suppliers, 
Plessey, the General Electric 
Company and Standard Tele- 
■ phones and Cables. 

System X was developed to 
meet British Telecom's- needs 
and in an attempt to recapture 
’ a share of the world telecom- 
; muni cations market, from which 
UK manufacturers have steadily 
withdrawn in the past 20 years. 

But its export performance 
-has been disappointing so far. 
British Telecommunications 
.Systems, the consortium set up 
to market it overseas, has 
notched -up - only one swan 
order; fn China. 

Flessey already has excess 
capacity in its British plants, 
so the idea of starting System 
X production in the U.S. may 
seem paradoxical. But. telecom- 
munications equipment cus- 
tomers all over the world are 
increasingly insisting that their 
suppliers manufacture locally 
and 'provide on-the-spot service 
and support. 

Hie exact direction in which 
■the "U.S. telecommunications 
market will develop in the next 
-Tew months is still somewhat- 
uncertain. The anti-trust settle- 
ment has yet to be aoproved 
by a federal judge in Washing- 
ton^ who has heard numerous 
criticisms from AT & T’s com- 
lietltors. It may also be modified 
by legislation is Congress. 


BNF rejects caiicer- : v 
death toll claim ; • 

BRITISH Nuclear Fuels -yester- 
day rejected environmentalists’ 
claims', that - radioactive di& 
charges from its reprocessing 
-plant ' at Sellafield, Cumbria, 
would result .to. 30 fatal' cancers 
over 30 years. • 

: The- Political Ecology He- 
search 'Group has issued -a 
report, commissioned by the 
anti-unde ar organisation Green- 
peace. BNF says that ' any such 
hypothetical deaths claimed in 
the- report would be “lost” 
among the' total number. . of 
fatalities from the disease. ... 

The calculations 'made in the 
research group’s report, " The 
Impact of Nuclear Waste 
Disposal to the- Marine Environ- 
ment,” presupposed a death rate 
of one is very 10m, oh the basis' 
of a' European population of 
300nv says BNF. Total deaths 
from cancer , in Europe in the 
past three, decades had been 
24m. 

Post (Mce pegs 
price o£ letters 

THE Post Office is freezing toe- 
price : of letters - and Inland 
parcels until :a£ least April next 

year. . . 

Mr Ron Bearing, chairman of 
the Post Office,. -said "econo- 
mies, encouraging productivity 
•improvements and vigorous 
marketing” had combined to 
make the freeze possible. Letter 
traffic had fallen less than 1 per 
cent- to the first half of 1981/82. 

. The Post Office’s share ’of the 
parcels Jhisfcess :ha» -■ grown 
Significantly and fts expected 
to show a profit of . £7m. K 1 ms 
carried ah. extra! Um parcels in 
the last year. Letter prices rose 
last to Februaiyvby an average 
■of 9.5 per cent. 

Investors warned 
to be more wary 

NEW controls oh ■ investment 
advice is. -called for today to 
the latest Issue of Money 
-Which? magazine, published by 
:the Consumers’ Association. 

The magazine cl aims ' that 
present 7 laws . allow some 
advisers to operate without any 
controls on 'toe way they' run 
their businesses. 

. It warns investors to be wary 
of entrusting money to an . 
investment advisor until new 
laws ate -passed and says it is 
essential . to obtain references 
from .an adviser, preferably 
fronta'bank. 

Ritz acts on 
Ronay attack 

THE Ritz Hotel has launched 
a campaign to attract guests 
after being criticised by 
gourmet Egon. Ronay for falling 
standards*. 

The Ritz has pegged the price 
of its weekend package until 
March next year and . has 
offered a cut-price two-day 
break. 

Mr Ronay said yesterday the 
Rilr in ' Piccadilly no longer 
deserved the title as one of toe 
world's most luxurious hotels. 
He* had said it was toe best 
hotel -to- London in his latest 
guide. The management, how- 
ever, insists it is offering guests 
the chance .“ to ... enjoy a 
luxurious time.” Mr Michael 
Duffell, general . manager, 
denied that standards had 
fallea. . The number of diners 
had doubled in the- last few 
months. ; •- ■ . 

Gilt-edged dealers 
go. into extra tune 

THE TRADING period for a 
day’s dealing in government 
securities has. been . extended 
until 5 pm. The Bank of Eng- 
land, through toe Government 
broker, bas been prepared until 
now to deal wjth jobbers to 
toe - gilt-edged market- at W 
time' between ’ 10 am - and 
3.30 pni. 

The move into 41 after hours " . 
trading is- seen, as an attempt 
by the Bank of England to 
avoid toe . problem toe follow- 
ing day of validating move- 
ments in tap. stories which may 
have : taken . place - - after’ the 
formal, dose of business^ 


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of letters 


UK NEWS 


Youth 

training 

plans 

attacked 

By Alan -Pike. Industrial - 

- Correspondent 

THE GOVERNMENT'S 
version of lie proposed Youth 
Training Scheme was attacked! 
yesterday by the National 
Union of Teachers/ •" 

Mr Norman Tebfcit, Em- 
ployment Secretary, ■ will! 
decide this month whether lo- 
go ahead with his original 
plans or accept modifications 
proposed by the Manpower 
Sendees - Commisstoa. 

The new, year-long com- 
bined programme .of training, 
-work experience ^and further 
education is due to replace the 
existing Youth Opportunities 
Programme : in. September 
1983. ..The MSC proposes., 
that the scheme should be 
open ‘ to all 16-year-old and 
eventually 17-year-Old school 
leavers rather than just the 
unemployed, and that allow- 
ances should he at least £25' 
a week rather than the Gov- 
ernment's suggested £15. 

A third difference— une on 
which Mr Tebblt has so' far 
shown no sign 6f giving 
way — is the MSGTs view that - 
the Government' should not 
withdraw the right to supple- 
mentary benefits from 16- 
year-olds who refuse to take 
part in the scheme. 

The NUT condemned the 
Government's ^ approach as a 
“ cynical attempt to reduce 
the unemployment figures \ 
before the next fieneral 
Election.” Mr Doug McAvoy, 
Deputy General Secretary, 
said the proposals Were a 
short-sighted and piecemeal . 
attempt to massage the young 
jobless figure rather . than 
provide proper. training. "' 

EEC fishery 

project grants 

THE EUROPEAN Commis- 
sion has made grants totalling. 
£2. 59m for 60 fishery projects . 
in Britain; -writes. James 
McDonald. Of the total, 27 
projects are lor the construc- 
tion of fishing vessels* in. a 
number of ports, 23 for the 
modernisation of vessels and.. 
10; for fish fanning projects. 

The - grants were made 
under measures designed to 
'modernise coastal fisheries 
throughout the EEC. Priority : 
was given to the financing -of 
projects in regions 'fating 
particular 1 • difficulties " iU - 
raoderniting their -fishing 
industries^ 


Duncan Campbell-Smith reviews an attempt to tame the archaic monster of insolvency practice 

Blowing the cobwebs from old and complex laws 


THE PUBLICATION together 
of both the first , and second 
parts of the Cork Report on 
-Insolvency - Daw- and Practice 
meant -the release for sale- 
yesterday of one complete 460- 
page volume*- ; . , 

The report iswriteninplato 
and elegant English and is 
dearly intended to be con- 
sidered-os a whole, rather than 
piecemeal, as supporting 
evidence for one legal reform 
or another from time-tp-tima. 

It begins with a sweeping 
review of - insolvency law and 
the way It has developed over 
the years as . an ad hoe legal 
structure based on aild- 
Victorian laws, and procedures. 

The report concludes that 
this has produced “the present 
cumbersome; complex, archaic 
and o ver-rtechnical multiplicity 
of insolvency procedures." The 
response of the committee, 
headed by -Sir Kenneth Cork, 
has . been to propose a truly 
comprehensive overhaul. 

' The committee’s report has 
thus been tailored rather as a 
seamless garment. Neverthe- 
less, its substance is perhaps 
divisible into three main areas: 
the court mechanics ■ of - In- 
solvency practice; the approach, 
to companies- on the brink of 
financial collapse, and the treat- 
ment of .an insolvent com- 
pany’s assets. 

Existing procedures, says the 
report, should be replaced by 
one uniform procedure applic- 
able 16 insolvent 1 individuals 
and companies alike. Applica- 
tions for insolvency should be 
I open to -either creditors or' the 


debtors! themselves, in the com- 
pany sector, both compulsary 
liquidation and creditors’ volun- 
tary winding-up arrangements 
would be changed significantly.; 

The committee proposes the 
establishment of one Insolvency 
Court, to form part of the Chan- 
cery Divisionof the High Court 
The Bankruptcy Court would be 
abolished. The Insolvency Court 
would work with High Court 
Judges and registrars, curtail- 
ing the present role of the Offi- 
cial 1 Receiver. "The pragmatic 
exercise of discretion and the 
expedition of procedure’s” 
would be the principal features 
of the new court - 

. More uniformity is introduced 
on the one hand, but the report 
urges - greater differentiation on 
the ether between circumstances 
of insolvency.- At one extreme, 
it says, simple consumer deb- 
tom should be kept out of the 
courts -as far as possible. Debt 
repayments by instalm ent would 
be one option. 

•' A '-"voluntary and informal 
deed of arrangement should 
be -made available in a broad 
range qf cases. This is especi- 
ally applicable to individual 
debtors. However, the report 
believes that voluntary arrange- 
ments without an order of court 
should also be used in the cor- 
porate sector, particularly for 
small . epmpanies. 

At the other extreme, court 
action should weigh more 
heavily against- “ delinquent ; 
directors" of insolvent com- 
panies. Some would face man- 
datory disqualification from 
company directorships. The 
.court could impose discre- 


tionary disqualification in other 
circumstances. The most strik- 
ing of these Is where the court 
might be “ satisfied that, having 
regard to his conduct as a direc- 
tor or officer- of a company or 
public company, it is expedient 
In. the public interest that the 
person concerned should be w 
barred from directorships. 

The qualifications of insol- 
vency practitioners is one other 
mechanical aspect of insolvency 
law given some importance. 
Anyone acting -as a liquidator, 
receiver or trustee should "be 
required to he a member of a 
professional body approved by 
the .Department of Trade.” 
Unqualified, practitioners would 
be subject to “a substantial fine 
per diem.” 

The second main area of the 
report considers the approach 
which should be taken to com- 
panies in serious financial 
difficulty. 

The report praises the 
general system, unique to this 
country, of the present law on 
floating charges. Tins allows a 
.Receiver to be appointed tor 
reclaim .secured loans. How- 
ever, as widely anticipated, it 
proposes the appointment of an 
administrator by the court 
“primarily in cases where the 
company has not granted a 
debenture secured by a floating 
charge, although (the appoint- 
ment) is not intended to be 
limited to such, cases.” 

The administrator is -certainly 
not presented as a kind of 
substitute for a Receiver. The 
report says that the appropriate 
circumstances for an . admini- 
strator “will be almost infinitely 
various" and should not be 


closely prescribed da legisla- 
tion. Indeed, it is envisaged, 
for example, that where a 
Receiver’s work is impeded by 
the limited nature of the float- 
ing charge, there "may be a- 
good case for the appointment 
of the . Receiver as ■ a ditd ni- 
strator.” . . 

In critical respects, however,, 
the administrator's powers 
would go beyond those of a 
Receiver, and practice under 
.Chapter S3 of the UJ5. Bank- 
ruptcy Law has obviously pro- 
vided an influential model. The 

administrator would be em- 
powered to suspend the rights 
and proceedings of <all- of a 
company's creditors. In parti- 
cular, “ there should foe a. 12- 
month prohibition on certain 
secured creditors reatisisag 
their security except by agree- 
ment or with the leave of the 
court." 

The report considers at length 
the problems of “ fragmentation 
of security ” where a company 
has given many different float- 
ing charges over a$ whole range 
of assets. The resulting in- 
ability of a receiver to include 
vital pants of a business in . an 
urgent rescue package,, perhaps 
entailing their sale, is described 
as “a serious defeat. in our 
insolvency laws." Proposed 
amendments to the law on fixed 
charges would empower a re- 
ceiver or administrator to over- 
ride them, -with court. approval. 

A wealth of other detailed 
proposals is included in lids 
context, answering many of the 
criticisms of existing law 
prompted by recent corporate 


collapses. ’ It is suggested, for 
example, that general creditors 
should be. consulted by a re- 
ceiver — fo rming their own, com- 
mittee where they so desire — 
although the ultimate discretion 
of Che receiver is -respected 
carefully, 

' The power of any 12-mon.th 
moratorium- would be extended 
to bar a company’s suppliers 
from redairo&ng goods not yet 
wfcoHy paid for and delivered 
with reservation of title. Sup- 
pliers axe entitled to do tide at 
present, in line with, the cele- 
brated court judgment of 1976 
which allowed Boanaipa AJuraL- 
•Tvnrm to recover, goods to .'this 
way. 

• The report urges fundamental 
changes in the treatment of .an 
insolvent company’s assets. 
Five major amendments would 
'ensue. . 

Most striking is a proposed 
cur tailment of preferential 
credit, which at present has first 
claim on all assets. The report 
■would abolish preference for 
local authority rates, corpora- 
tion- an^ capital gains taxes 
among others. National Insur- 
ance and FAYE contributions 
.would be retained, but for ■ a 
reduced period. Employees’ 
wage claims would be paid up 
to -statutory limits from, a 
preferred fund, but thereafter 
would- rank as ordinary, un- 
secured debt 

On the other hand, -10 per 
cent of all realisations under 
floating charges would he set 
aside to a fund for distribu- 
tion to ordinary, unsecured 
creditors of an insolvent com- 


pany. Numerical examples, set 
out the putative working of this 
second amendment 

.The committee proposes 
restrictions on the privileges of 
limited liability, which- go sig- 
nificantly beyond -existing prac- 
tice. Companies already insol- 
vent which go on - to incur 
liabilities "with no reasonable 
prospect of meeting them ” and 
heavy under-capitalisation would 
fit into this concept— would be 
guilty of wrongfully . trading. 
Directors a party to-such activity 
would have their personal 
assets subject to civil liability 
suits. 

- The report turns to the 
shadowy affairs' of -companies 
which use floating charges and 
■insolvency as a way of trans- 
ferring assets to legally separ- 
ate, but effectively associated, 
entities, to the detriment, of 
third-party creditors. It would 
remove many of the difficulties 
of recovering an insolvent com- 
pany’s assets which have been 
sold to “connected persons.” 
■Many- of the', present legal 
devices open to connected per- 
sons would be greatly restricted. 

Finally, the report considers 
the vexed issue of relations 
between one company- and 
another within- the same cor- 
porate group. On the less diffi- 
cult question of inter-group 
debt the committee recom- 
mends deferment of the repay- 
ment by an -insolvent- sub- 
sidiary of any debt comprising 
a part of its long-term eapital 
structure. 

However, the committee has 
drawn back reluctantly from 
any proposals on a parent com- 



Sir Kenneth Cork 


pany's ability in law to abandon 
the debts of an insolvent sub- 
sidiary. It notes “it is absurd 
and am real to allow the com- 
mercial realities to be dis- 
regarded” as legal 'techni- 
calities allow presently. 
Reforms in this area, however, 
belong in the committee’s view 
to the wider arena of com- 
pany law — here at least this 
daunting ly comprehensive 
report has reached the limit of 
its brief. 

* Insolvency: Lmc fend Prue- 
tt ce — Report of the Rebteie 
Committee, Cmnd 8558 . RMSO, 
£13.35. 


Campaign to ban 245-T I Cavity fill 6 an unreasonable risk’ I sells college for £5m 


POLITICIANS including Mr 
Michael Foot, the Labour leader, 
joined trade unionists yesterday 
I' in 'calling for an Immediate ban 
on the use of the chemical 245-T 
in weedkillers, 

“ There , - is overwhelming 
evidence that 245-T. which con- 
tains a -deadly con taminan t, 
dioxin, can cause cancer, birth 
defects, skin diseases, and a 
wide range of other side effects," 
they said at a meeting at' the 
House of Commons. ' 

[.-.- Farmworkers had been warned 
by.-' their trade union of the 
dangers of 245-rT, but ■ amateur 
gardeners could still buy weed- 
killers containing it over the 
counter, they pointed but 

Mr Jack Boddy, leader of the 
farmworkers' section of. the 
Transport and- Genera! Wor- 


kers’ Union, and Mr Moss Evans, 
the union's general secretary, 
said that responsSjitity for pes- 
ticides should be transferred to 
fh Health and Safety Executive, 
which had trade union mem- 
bers. ’ 

The campaign to outlaw the- 
chemical is aided by the publi- 
cation today of Portrait of a 
Poison, the 245-T Story, written 
by Judith Cook and Chris Kauf- 
man.; 

Mr Kaufman, a research 
officer with the agricultural wor* ' 
kers. .said: "245-T contains 
dioxin, one’ drop of which is 
capable' of kilting some 1,200 
people, yet in Britain the 
Government refuses to ban its 
use.". ■ 

Portrait of a Poison. Pluto 
Press . £2.95. 


BY MICHAEL DONNE, AEROSPACE CORRESPONDENT 


BY LORNE BARLING 

urea Formaldehyde foam 

insulation, which is commonly 
used to fill cavity walls of build- 
ings, presents an unreasonable 
risk of injury because its 
toxicity cannot be controlled 
through voluntary or mandatory 
standards, according to Mrs 
Nancy Sterots, chairman of- the 
U.S. Consumer Product Safety 
Commission. . 

She told a Bimtingbam con- 
ference of the Royal Society for 
the Prevention of Accidents 
(Rospa) -that use of the foam in 
the U.S. for building insulation 
had .been banned by the com- 
mission after more than 2,000 
complaints of adverse effects on 
health. 

Her comments come at a time 


of wide debate in Britain about 
the possible dangers of toxic 
gas emissions from the foam. 
The British Standards Institute 
is making a study of the effects 
of the foam. 

Mrs' 4 Sterots said she had 
examined a wide range of evi- 
dence on the gitoject (before the 
commission voted earlier this 
year to prohibit use of the foam, 
bat concluded there was no 
voluntary solution to the prob- 
lems. .... 

"Because of this insulation's 
uniqueness— since it is manu- 
factured on site before ft is 
pumped into the wall— it Is diffi- 
cult ' to have adequate safety 
control procedures before its 


installation. Once ft is installed, 
if there is a problem with the 
release- of formaldehyde gas, it 
is virtually impossible to 
eliminate "'‘she said. 

However, Mr Frederick Stacy, 
a Rospa special projects officer, 
said he believed that different 
conditions in the UK building 
industry eliminated most of the 
dangers. 

Mr Stacy.saod that most homes 
to Britain, unlike those, in die 
UJS. had either brick or other 
non-poroas interior walls which 
prevented the seepage of gas 
into buildings. Companies 
involved to tins work had also 
imposed strict standards' 
through, their trade association. 


BRITISH AIRWAYS has sold 
its College -of .Air Training for 
more. than £5m to H amble Air- 
field Properties, a consortium of 
Hampshire businessmen. 

. They will continue to use the 
college at Hamble far flying 
training after they take it over 
on July 16. ' • - 

The deal hrjngs to £15. 3m the 
value of .property and other 
assets disposed of by British 
Airways since last September, 
when the airline announced a 
major retrenchment scheme, as 
' part of Its attempt to get back 
j into profits.- 

That scheme included laying 
off 9,000 personnel through 
voluntary redundancy, shutting 
routes, closing overseas offices, 
selling aircraft and, more 
recently, reorganising the air- 
line into a divisional structure. 


with separate long-haul, short- 
haul' and Gatwick divisions. 

Among properties which 
British Airways is still offering 
for sale is the Victoria terminal 
in London, which has been 
closed for some months. 

The sale price for Hambl'e, 
includes the 189-acre site, build- 
ings and 47 light training air- 
craft. 

The college has been used to 
train pilots for the then British 
Overseas Airways Corporation, 
British European Airways and 
subsequently British Airways, 
since 1960. More than 1,800 
cadets were sponsored for train- 
ing there, of which 1,426 joined 
the state airline. 

In' recent years, the college 
has trained pilots for British 
Caledonian Airways and a num- 
ber of overseas airlines. • 


■ ’ ~ 'liS:'. 

"r’> P 
i :7rS 


- I.-:: 


Iprv -warned 
5 more winy 


2cf> on 
^ attack 



TODAY IS “UNION 






WHO? 


mo 

. v. : 

T . . “ .« - 


■ sort out people’s 
problems at work? 

■ campaign for higher pay 
and better Working conditions 
for everyone? 

■ want a better deal for 
pensioners, for families, for 
children and for the 
unemployed? 

■ have 11 miNion members? 

■ stand for the future? 


■ is the Minister responsible 
for 3 million registered 
unemployed? 

■ believes cutting wages will 
create jobs? 

■ thinks the unemployed 
should get on their bikes and 
look for work— which doesn’t 
exist? 

■ . intends to deprive millions 
of people of their rights? 

■ stands for the past? 


FT 


UNIONS TEBBIT 


Tebbif s Law, write to the TUG, Congress House, Great Russell St, 
London WC1B3LS. 



UNIONS WORK FOR YOU* 

DON’T LET TEBBIT CRUSH THEM 


The Government is trying to 
crush trade unions. Mr. TebbiVs 
Employment Bill, now before 
Parliament, will drastically 
reduce the rights of unions to 
organise and defend their 
members, it wili allow unions to 
be sued for up to £250,000 for 
action which for decades has 
been perfectly legal. 


cause trouble for employers. 

It will harm Britain. It will 
harm you. 

That is why the TUC has 
designated today “Union Day”, , 
to alert everyone to the real 
dangers in this Bill, and to s ? 

remind the nation of the positive 
work, unions do. 


Mr Tebbit pretends that 
his Bill is a “modest and 
moderate” measure. 
Butheistryihgtofool 
you. 

Tebbif s Law is a bad 
Jaw. It will cause conflict 
in industry, tt will 




m 












UK NEWS - PARLIAMENT and POLITICS 


Financial: Times Thursday June IQ : 1982,2 : ; ] 


LABOUR 


FUTURE OF THE FALKLANDS 


Commons Sketch 


Pym on defensive as Labour attacks Jim loses 

BY IVOR O VtQi his head 


TUC to launch campaign for 


MPs forced Hr Francis Pym, the sooth Atlantic, 
the Foreign Secretary, on to the bluntly: “ Who runs 


ashed U.S. would not feel able to establish the security of the 


British participate in any international islands. 


defensive yesterday when they foreign policy?” Was it the force to guarantee the security Mr Healey argued that Britain 
probed the extent of differences “much maligned” civil servants of the Falklands, after they had had lost support at the UN 


between Britain and the U.S. in the Foreign Office or been repossessed by Britain, ex- Induddng that of the TJS_ ami 

mmlnnTialii in 4 A._ mifm-F , _ .ill ■ v. V 0 * 1*1 


under rebel 
pressure 


sr john lioyi3 f labour editor 


over relying exclusively on Downing Street, he demanded. crept in the context of m agree- her allies in Europe through 

wii litoM onfinn to corhira tLa TUT v HolviilT mmtorl nouimonap mart? Ktp Urfhoin to - . 


zaiJitary action to secure the Mr Dalyell quoted newspaper men* by Britain to negotiate cm using the veto against* a resohi- 
withdrawal of Argentine forces reports pointing to a growing their future with the Argentine, don which had linked a cease- 


from the Falklands. gap between the Prime Minister He 33 ked ^ Foreign Secre- ^ with *e withdrawal of 

In a senes of questions Mr and her Foreign Secretary and fer ^ ^ssorance that he Argentine troops, 
mis Healey, Labour’s shadow asked whether they were “ com- M ^ d^ed his irrfmi He urged the Government 

•reign Secretary, underlined pletely without foundation.” .negotiations. Mr Pym replied- “At this late hour” to seek to 


gap between the Prime Minister 


Denis Healey, Labour’s shadow asked whether they were “ com- not closed his irrfmi such Me urged the Government 
Foreign Secretary, underlined pletely without foundation.” .negotiations. Mr Pym replied- “At this late hour” to seek to 
the falitog offm support for Mr Pym told him: “Whatever “Secretary of State Haig did produce a resolution at the UN 
at T “2. e and suggested the answer to that question I not in any way dose -the door on 80 might stiH be possible 

that the U.S. was stiff pressing am sure that you don’t run the possibility of what might be se 5 ire tiie withdrawal of 
strongly for Argentine involve- British- f orelgn policy." This arranged dn the future.” Argentine troops without the 


the faffing off m support for ^ pym t0 ld him: “Whatever 
Bnfcun atthe UN and suggested ^ answer to that question I 
that the U.S. was stiff pressing am sure that you don’t run 


SEATED WEARILY on the 
Government r front bench 
yesterday as the Commons 
faced another all-night sitting 
on- the Northern Ireland Bill, 
Mr James Prior might have 
reflected on the fate of the 
Earl of 'Essex, who - made an 
in-considered foray into 
Ireland nearly four centuries 
ago. 


meat in negotiations ^ on the brought a croy of "Do you? 


Umgerm future of the Falk. & ^ necessKy to wait ” ^ tiere Eis^g^e^ta ^ 

Mr Pym also had to contend ^ Py™ refused to comment and see. because- at present .it ^d be % n » supeSriS^a^S cobbled up an agreement 

with some unrestrained ques 011 he . terme<3 , was not possible to. foresee the tions ” about the resolution with the rebel Earl of Tyrone, 

tioning from the Labour speculative pieces m news- crrciunstances wtoch would pre- Te toed by Britain. But he in- Unfortunately, this was the last 

benches about his reported papers which are written from vail foUowingBn tains reposses- s isted that it had not adequately straw.. for Queen Elizabeth 

riiffF»rf»nf*P« with Mrs Thalfhflr time to time for one reason or SI on of the islands. lintail -> MEcafiM anrt t*tt+ -Rasa**- nn thf» marl to 


from the Labour benches. 


e possibility of what might be t0 secare withdrawal of Ireland nearly four centimes 
ranged dn the future.” Argentine troops without the . , . .. . 

thw, twA-un bloodshed which mi g h t other- After marchi ng ins troops- in 

The Foreign Secretary argued wjgg follow. circles through the Irish, bogs 

at it '^f_ n ^ €S ff z T te wait Mjt Pym accepted that there Essex gave, up in despair and 


cobbled up an agreement 
with the rebel Earl of -Tyrone. 


differences with Mrs Thatcher tnn r. ro 
over the handling of the Falk- ariatiier - 
lands crisis at diplomatic leveL Mr H 


Mr Healey pressed for con- meat’s task, he- said, to do what- 


Mr Tam Dalyell (Lab. West Urination that Mr Alexander ever 


m oi roe isianos. linked a ceasefire with the with- 

it would then be the Govern- drawal of Argentine troops, 
ant’s task, he- said, to do what- To Government cheers he told 


and put Essex on the road to 
the Tower of London, and the 
executioner’s block. 


Lothian) a leading opponent of Haig the U.S. Secretary 


appropriate Mr Healey: “ Quite frankly the We can. only hope our amiable 


Britain’s military operations in State, had made it dear that the may 


with however many friends as answer- to the problem 4s for 


available ” 


re- Argentina to withdraw.” 


CBI seeks 
cut in tax 
on industry 


L / ' •* **$ • 

--■* s, 


By Robin Pauley 


- ■ 

v > ’1&. « 
.M- 


• ^ • vf - 


•'S': -V-.: : 


THE UNEMPLOYMENT trap is 
more important than the 
poverty trap and any moves to 
lessen the burden of taxation on 
the poor at the expense of 
middle income earners would be 
very undesirable, the Confedera- 
tion of British Industry said 
yesterday. 

CBI officials led by Mr Brian 
Rigby, deputy director general, 
gave evidence to the Commons 
Treasury and Civil Service 
Select Committee which is 
examining the structure of per- 
sonal Income-tax and income 
support. 

Mr Alan Willingale, chairman 
of the CBI taxation committee, 
said tbe corporate sector paid 
too much of the total tax .take. 

The preferable way of reducing 
it without adding to the burden 
of personal taxation would be 
to cut simultaneously taxation. 

Government expenditure and 
Government borrowing. 

But Mir Dermot Glynn, CBI 
economic director, said later 

that some increase in borrowing 
above the tight 1982-83 limit 
would have been acceptable If 
tax costs had been cut “ despite 
'The effect it might have on 
interest rates.” 

Mr Glynn and Mr Rigby 
agreed that the Government had 
made too much of a "totem 
pole ” in the past out of the 
public sector borrowing President Re 

requirement yesterday aft< 

Mr Rigby said personal tax 1 

allowances should be raised at 
least in line with inflation as a -. 
way out of the proverty trap jV/j] l-* 1 © ll 
rather than changing the main -iv AA O' U. 
bands. The poverty trap was 
exacerbated by the prolifera- TtflJliOA i 
tion of both benefits and' ' 

agencies admi n i s tering them. BY ^ tea WOOD 

He said that the abolition of 
the national insurance sur- INDEPENDENT 
charge would release £2.5bn and should in 



Turnout’ 
key to 
SDP battle 


By Elinor Goodman, Politieri 
Correspondent 


1 s ~*' • 

\ - . 

■ . ; ; / 


MR Roy Jenkins's chances of 
becoming leader of the Social 
-Democratic Party could turn on 


chum at the Northern Ireland 
Office does not suffer a 
similar fate at the hands of., 
Mrs Thatcher, who is said to i 
take a dim view of bis efforts 
to set up an elected assembly 
in Ulster and introduce a 
programme of “ rolling 
devolution.” 

A group of Conservative back 
benchers, opposing the, Bill 
together with the Official 
Ulster Unionists, managed to 
chalk up at least one -success 
last night They actually suc- 

; ceeded in making the norm- 
ally in perturbable Mr Prior 
lose his cooL 


THE TUC'is to begin an active, 
if somewhat -lew-key. campaign 
for British, withdrawal from the 
Common Market, 

The campaign is in response 
to a motion, passed at the TUC 
congress last year,- to commit 
the TUC - for the first time to 
an anti-EEC stance. 

The TUC’s economic commit- 
tee yesterday-- approved a 
propaganda.- campaign which 
would include the publication 
of two' leaflets on farm prices 
before its next congress in 
September. ? . 

A more substantial.' pamphlet, 
planned- for October, is to put 
the ease for withdrawal but also 
to state the. problems of a UK 
economy after withdrawal. 

Some union leaders are un- 
enthusiasfic about the campaign, 
believing that British member- 
ship of the EEC should be 
accepted and that ft cqw yield 
benefits. They will look to the 
October pamphlet to provide a 
full statement. of the problems, 
in the hope that it may stimu- 
late a reassessment - 

Anti-marketeers, however, 
will insist on implementation 




THE EEC has agree# .to help 
fund the Vales TUCfc pro- 
posed development eehtrefor 
workers’ co-operatiVes from 
the European Social - Fund, 
Mr George Wright, Welsh 
TUC general secretary, said 
in Cardiff yesterday, writes 
Robin Reevei -’ 

The cash pledge follows a 
recent visit to Brussels, where 
-the Social Affairs' Commis- 
sioner said the ! EEC would 
match any initial Government 
fund for the project. 

The money would be pro- 
vided under , hew EEC Social 
Fond criteria ■ to help job 
creation initiatives by «wmn 
businesses and co-operatives. 

The Wales TUC has asked 
the Welsh Office for £25,0W 
to meet the start-up costs, 
plus a total of £150,000 a year 
to cover the running- costs of 
the centre. • ' ' - 


and industrial democracy, which 
is now virtually certain to be 
passed by tbe TUC general 
council th is month. . 


The docuttbent calls for a 
large increase in paabning at a 
new Planning Ministry, pins an 
annual national economic asses- 
xneht to cover “ fee use- of re- 
sources between- personal con- 
sumption, public and private in- 
vestment, public sendees and 
the balance of trade.” Such an 
assessment “ wiH have to cover 
the share off national income 
going to profits,' to earnings 
from employmentr- to rents, to 
social benefits and other in- 
comes”— a formula seen by 
some oh the left wing of the 
.TUC as opening the . door to an 
incomes - policy/ 'wfafch they 
would ‘reject..' . 


However, the document is 
the^Srl* dikely : to -be approved this 
tne centre. . . J .. , v _ montiibythe.Labour Party 

national erewrfive, as well as 
• “ by the general council, and wifi 

them, will make the campaign then be. discussed more widely 


late a reassessmeiA. - for withdrawal more realistic before', being put to congress 

Anti-anariceteers, however, and powerfuL > and the; party confer ence in the 

wdl^ insist on in^»l«nentation The economic tonfihHlfee' td 6o r adturan, U^porition: to incomes 
of the congress, demston. They awroved lhe fiiial drgfft df-the 'policy is likely -to surface at 
believe that a rehearsal of the TUC-Laboar Pariy^ liaison <om- those gatherings, .rather Shan 
problems, and a recognition of mittee’s document- oh* planning ' before. 


believe that a rehearsal of the 
problems, and a recognition of 


the number of members who “No* I won’t give way because 


bother to vote in- the election. 

His supporters now acknow- 
ledge that . the .contest. i$ suffi- 


I son getting very worked 
up,” he snapped at Tory MPs 
. who tried to interrupt him. 


cently finely balanced for the an impassioned appeal he 


Civil Service strike last year 
cost nine unions nearly £10m 


-• -• • r£-' *'■'■■■ .r "■ 


outcome to depend on the level 
of turnout A high turnout, they 
say, would benefit Mr Jenkins, 
while Dr David Owen- could 
have the advantage if only a 
minority of the party's 65,000 
paid-up members voted. 

This is because Ike Owen’s 
power base is believed to be 
among party activists, while Mr 
.Tenltins's strength is thought to 
be among the wider member- 
shin. - 

Nominations for the lMrter- 


. begged them to remember 
what was happening in 
. Northern Ireland, the real 
distress of the people there, 
and the duty of the West- 
minster parliament to face 
up to events in the province. 
Bitterly he accused his Tory 
opponents of making pre- 
cious - little attempt to 
identify the true nature of 
the situation or to bring 
- forward proposals to improve 
it. 


BY OUR LABOUR STAFF 


shio close tomorrow. Ballot Soime of his critics had alleged 
paners, together, with 750-word that -he had drawn up the 


" ; - '• V '' «• 


, ■ •>“"> . V V.'- • 1 




, v.yv 5 . * • ' 


'' : v *' '■'/ 

. - • • • ~ 

■' -- v, • 







President Reagan and Mrs Thatcher meeting the Tress 
yesterday after a working breakfast at 10 Downing Street 
The President left later for Bonn 


statements of -the candidates’ 
views, will go out next week. 

Over the past week, the Lib- 
erals have become increasingly 
concerned at suggestions that 
Dr Owen’s performance during 
the Falklands crisis might have 
improved his chances of win- 
ning. They fear that if he 
becomes leader it could pose 
major problems for the alli- 
ance. 

It would alto raise the whole 
question of who should be the 
alliance's putative Prime Min- 


BiL In a colonialist fnune of S* ” ot tIHWS °> 
minA tsxchequer. 

"I have been accused of many 85 J xa \ cent . °* 

things in the course of my 1 ^L5 aa<u i t ® ^ 

Politic, career, and 


NINE UNIONS spent nearly 

£10m on the .21-week campaign E<HMUSATIOiN^ GOSYT< 

of strikes last year in' support — : ^ -.- — aii 

of higher pay In the Civil *• -.Amount 

Service. Final cost fibres were ... . . P“^* n -f 

given to union members yester- union 

day. - - jS ■ 

The dispute cost the Govern- CPSA -, -2A2Dg000 • 

ment at least £500m in interest .*’ • *. r. 

charges alone. This snm went • 3,030,00^ 

on servicing the money «SF - - ? £00,000 • 

borrowed to bridge the revenue 050 3Kk00p ; . ' 

gap created when disruption at . AGSRQ • 13^000; 

key computer centres halted NTPSA • : - 

the flow of funds to the FDA/AIT - ' 

Exchequer. - - 

Paymeats of 85 per cent of ... . . v " 

5 > Money to be rHIunded toTmion.' 


equalisation costtrOF mi avai sbivice strikes 


Equafeatioo payments 
.1 Now . Later 


esu 

AGSRQ 

NIPSA 

FDA/AIT 


2,420^000 

2J)2Q,00Q 

2,030,000. 

1^600,000 

210,000 

130,000: 

IMMXD'' 

- muor: 


75J3Q0. 
2SJ000 
1SJ30Q , . 

SOjOOQ* 
25 toO 
25to0. 
20,000 ■ 
- crayon •’ 


150 toO 

- aywo 


200to0* 
60 toO 
toJPOO 
20 JXM 

* 30to0 


2X5 toO 
2j»5toD 
2,105to0 
I^SOtoO 
39StoO 
. ZTStoO 
32t<m 
190,000 


9^I5toO 


ably will be in the next few 
hours, but I have never came 
across that one before,” he 
observed sourly. 

Sunny Jim’s uncharacteristic 
irritability was very under- 
standable. On the third day 
of jhe Committee Stage and 
after sitting until 6 ash 
yesterday the House had only 
readied page two of the Bill 


MPS urge assessors for 
police complaints inquiries 


ister during an election cam- w ™ DUL 

paign. as Mr David Steel the Meamriule. Mr Don Concannon, 

Liberal leader, has -made it T ^°^ sman ™ 

dear that while he would be 


prepared to stand aside for Mr 
Jenkins, he .would . not be 
prepared to make way grace- 
fully for Dr Owen. 

Nevtherless, the Liberal 


Labour’s tookesman on 
Northern Ireland, proposed 
an amendment to remove the 
provision that any devolution 
scheme should have .the sup- 
port of at least 70 pier cent of 
Assembly members before it 
was submitted to 'West- i 
minster. I 


Z- m , SSYw / jjn l/Jtrii.i'i uijiWi assessors 
charge would release £>.5bn and sbould belp investigate com- 

^ C ^ b S e , s l costsby * 2 - 5 . Der Pl^ts against the police, a 


11113 lUyiUi lC3 leadership is lSkdy to be at minster^ 

'• . - pains not to get involved pub- 

: Hdy^ in the contest for fear of ^StaSLl J5?«2?5S *J* e 

being accused of med dling in reminded MPs that they were 
mended by. the Royal Conxnis- OT “earning dealing with a different poli- 


in selective strikes. Distribu- T • • • • V* ■ 1 

tion. of these costs between 

unions belonging to the Council OTer CCSU fo 

<rf Civil Service Unions is ^ttve. costs ^ less ' 
known as “equalisation” and “ rawa f™ 111 CCSU fun 
is shown in the accompanying A sum of £25O,0t3Q 
table. paid to the IRSF for 

The equalisation issue caused t * on » it vqU. lator. 
a major row within the council . £50,000 to the 
A considerable sum was owed - wlH - have. to..pay ^25. 
to the Inland Revenue Staff wiH be. passed 

Federation (IRSF). The Civil a speciaJJ.CCSU,. jBght 
and Public Services Association tised to >finsn£l 
(CPSA), which owed & large schqa. 
amount, jras reluctant to make Final payments, 
it available. roughly reflect union 

The table gives details of the ship, will create. 
settlement, which is now being some unions.- Original 
implemented by some of the tion proposals, for , 
umons; Column one is the sum suggested that the Givi 


over to the CCSU for. .adnrini- £200,000, and £300,000— an 

■-■ftwafti amount that would have ffec- 
drawn from iXSU , tivrfy bankrupted it ‘ 

nnui '•5^ 7 -. l,e :^he lijiffm is how due to pay 

pmd to the .IRSF for equai>ra- £85000 and will not. .find this 

lesser^mount easy to raise. Its 


awy.yw ro .pie -va^ocl. lipsa mnet . jyatonnts. suggest 

will have to^pay £ 22 5.ffl M . The ., that. assets.. worth 
? U>ney - ’ V ^™ I>assed *148,494, and it- has 45,000 

a i SperiaJv,CCSU i flghto» fhnd-' .jnembera- ... * : 

actioiL 364 John Sheiddn. the CSU 

u 1 ‘ % J:’ . Seneral- secretary-designate, ack- 
rmai payments. which nowtoripp* that tho 


actioaT :■ SheWdn. the CSU 

• " . 13 - ■ 1 - <•' , seneral- secretary-designate, ack- 
* 1 ?f i payments, which nowledges that the strike cam- 
roughiy reflect umoi ■ member*, ptign pushed the union’s fln- 
smp, will creirte.^ibiem^^for; ahees to a- “critical point” This 
some unions.- Original squ*fisa- /had. now passed, however, and 

tfc WT0 was “an identifiable trend 
^ Qvfl Seivice Awards a good,' sound and 


cent of total labour costs, free- commons select < 
ing funds either for mating “£3?Sd yesSW 
pnees more competitive or for „ ; „ 

investment and modernisation. " ut the -Home An: 


“puuni rue ervo ^fPoiT-c 

sion. on Criminal Procedure, A^thn.iah an miiunm «n.u 
Tint a i«i Although an opimorr poll 


committee 


But the Home Affairs Com- 


Both the CBI and the Asso- ^txao did not recommend a 


should not alto be given 
responsibility for investigating 
complaints against the police. 

The committee thought the 
establishment of a Crown 


UW1JI Ul LW vvmcai l LUX icon VI TUTD* 

bein g jc^ ed of med«ing in deaBnK wi ^ s a t gg e ^ t 
^thoS' an opinion poll, .gal pension . in Northern 

B vra* not like sleepy Dorset 


Of strike pay and money made. Umon (CSU) owed between healthy position”. - 

• • \ : r ;. 


ciation of Independent Busi- independent body to in- Prosecutor system unattainable 


nesses, which also gave evidence ^estigate complaints — a function in. the near future, so it recom- 


Jenldns would win a leadenftnp 
contest against Dr Owen, 
neither side really has any idea 
what the outcome will be. Both 
camps agree that Dr Owen’s 


or North Yorkshire. He 
accused the opponents of the 
Bill or seeking to kill it by 
stealth while avoiding the j 
blame for doing sou 


yesterday. 


under pressure of questions selves, 


difficulty carried out by the police them- 


m. tne near suture, so it recoin- landing has almost certainly « 5U - . . 

mended changes considered been improved by his handling we m. the 


1/OCKers tO Strike Plan to scrap 

in Tebhit Bill protest fair wages’ 

BY BRIAN GROOM, LABOUR STAFF ' v f ; norm attacked 


from the committee in detailing Police complaints procedures 


Immediately desirable.*’ 
The committee said 


of the Falkland crisis, during 
that which Mr Jenkins has had to 


Labour Party are not going LARGE NUMBERS of Britain's 
to be blamed for. Do your 24,000 dockers in 5ft Transport 


how changes to the taxation were identified by Lord Scar- where serious criminal offences take a back seat 


system would be paid for, par- 


ticularly 


report 


the Government Brixton riots, as a significant 


decided the answer could not 
he further public expenditure 
cuts. 


Safety Act 
‘effective’ 


By Man Pika 


cause or symbol of frustration 
and dissatisfaction among some 
sections of society. 

But a majority of the com- 
mittee said: “ We are not con- 
vinced that a new and indepen- 
dent organisation would do a 
more effective job than senior 
police officers in investigating 
complaints, and we are doubt- 


were concerned aH complaints 
should be reported bylhe police 
at the earliest opportunity to 
the regional complaints office, 
which would assume overall 


Dr Owen has, since the form- 
ation of the party, been 
assiduous about addressing 
party meetings, and has gener- 
ally had more contacts with 


own dirty work,” he adrised 
them. 

Doggedly Mr Cone annon pledged 


and General Workers Union 
wUi strike -for 24 hours today, 
to mark Union Day — the TUC’s 


largely unaffficted i ’' ' although 
ferries from Hull Will ; go with- 
out cargo. JSfiWHnkiexpects -its 
ports -to worii< 4 zKHTtojMly. 


By -Our Labour editor - 

THE Transport and General 
Workers Union has angrily con- 
demned the Government’s pro- 


his party’s continued support vrotest against Mr Norman 
on the main principles in the Tebbitis Employment Bill. 


Iast to scrap; the fair ~w£ges 

night awaiting tik^utconre of SfSSSJSfi 


responsibility. The independent party activists tha n Mr Jenkins, 
assessors, drawn from an ex- He is being actively supported 

nnnWofl «inr? mmriTiqf ion J 'DnKnn lo L — — - 1 - i_. _ »».= « 


ponded and regionalised Police in his campaign by Mr Michael -m- — r r : — ° ~ „„ „ , « _/. ~ r° uinauars- ■ ■ unman cv is 

Complaints Board, would act Thamas.^^Tto chairman of H 5LJSS2 i C# i t . °Sl2! 1 2? Jl* nV . to. stem ^Syfrom 


Bil' — “i have been around 
for 10 years on this question. 
But. I will keep on trying. 
I will keep on having a go.” 


■ AlChdufJh the strike call has 
official backing, the dockers are. 
Mkeiy to find themselves iso- 
lated. The TUC is pl anning 


a dockers’ meeting, ax Felix- 
stowe, and ‘^parted - no diffi- 
culties at Dover, ' J5<irtsmonth 
and Southampton. ; . ' 

^ Tbe doricfirs’ -’tfttijit^ncy is' 


not as investigators but would the party’s organisation com- 


THE Health and Safety at Work ^ whether, to use Lord Scar- 


give “motivation and direction mittee, has also developed close 
to the entire procedure." links with local parties. 

Greater use should be made 511 Jenkins’s supporters 
of conciliation in handling com- claim* however, that their can- 

nUtintv MA.4- : : V riirl.ntr> T-Orr, Qinr tram, 


Act has worked well general^-, m *“’ s criterion, the gain to the 


providing an effective umbrella public Interest would justify 


rewarded in the next few oacfced up with workplace the industry^ own ip™ 
days for the chances are that “ e ^S Dgs -* “ anxious to which hirecaused X m ^ 
Mr Prior win decide that gating the relative threaten WkSd%fSTim& 

enough is enough and will of its 1980 Day -of recently. Dorwt 


of legislation covering all 
people at work, the Confedera- 


the extra resources involved.' 
Mr Robert Kilroy Silk (Lab. 


plaints not involving criminal 
allegations, the committee said. 


didate remains more popular 
among the majority of party 


tion of British Industry told the Urmskirk) and Mr Alf Dubs 


Such complaints now eo through members who, while not 
the foil statutory .-procedure of actively involved In its affairs, 


Mr Prior will decide that 
enough is enough and will 
speed things .up by asking the 
Chief Whip, Michael Jopling, 
to bring the guillotine on the 
BilL 


Kc contractors to pay wages no 
less favourable' than these selt 
by free collective bargaining. 

■ Last month, Mr Norman Teb- 
hit, the Employment Secretory, 
told the Commons that the 
Government "had it in mind" to 
renounce Resolution 94 of the 
International Labour Conven- 
tion which lays down miirimum 


aouiuv on ics 19»U uay -Off re«»nt1v wuuai aoro snmiBim 

Action against Government her tSir^SS' levels for workers on pub- 
policies. *mur leaning. TOie; in Uie lie service contra I»fe 


Commons Employment Commit- 
tee yesterday. 

Implementation of the Act 


(Lab., Battersea South) dis- 
sented. 

The current system of investi- 


had stimulated the development Fating complaints costs about 


of better health and safety poli- £5-8m a year. It has been 


cies and had promoted joint estimated that a completely 


consultation and tr aining . 


constructive tripartite structure toP to £10m. 


independent system would cost 


had* been built up in the Health The committee gave strong 


and Safety Commission and its support to a Crown Prosecutor 


advisory committee. 


system on the model of the 


But, the CBI added, the Act Scottish Procurator Fiscal an 
had created a huge load of work independent public prosecutor. 


for industry, not all of it cost- 
effective. 


It sav£ no reason why local 
Crown ' prosecutors, recom- 


police investigation ■ and are are entitji 
referred to the Director of Piib- . In' all, ' 
Kc Prosecutions. SO. 000 pet 

The report received a the party 
guarded welcome from the look like 1 
National Council for Civil last coon 1 
Liberties. Ms Harriet Harman among me 
said it failed to deal with the the first t 
major problem of the system risen to 
which was the “grave public around & 
mistrust that the police investi- members 
gate themselves. last June 

“They recommended greater scrip tio ns. 
supervision but that still leaves 50,000 or 


John Hunt 


Port employers expect Lon- Sdnstriaf^Sicni^L 
don,- Liverpool, Bristol, the The Ttv fTnS^f r;. x «.._ 

Humber norts . ®*ftedf®tJUpre than 


are entitled to a vote. 

.In aH, about 65,000 of foe 

80.000 people -who have joined IVUccilpc urrrarl 
the party since its formation ITlioWIvj lUgcU 
look like having a vote. At the £ * . 

last count foe renewal rate IOF C3T20 SD1DS 

among members who joined in ® “ 

the first half of last year had BRITISH merchant ships and 

— ** i.*. rrn ... nil w!irn nL*»U il.— : a 


lie service contracts. 

Mr- Tebbit invited responses 
to the proposal from unions 
and employers, by the end of 
this month. No other responses 
have yet been received, though 


pons, u random our h, Siim teiflotc to' Si wr roe ena 

dasgow. South Wales. Tees bv trade S 11 * nwntl1 No <,t ^ ier responses 

and Hartlepool, and FelixsttSve U St’ 11 mU ^ been received, foou^i 

to be Xto^he% tS Jfe Plan has been denounced ^ 

militant-fed Soutb^Sn^l' self ^ iarty Smith » TCWCTs 
continue Se L f ’ 3ffPr foe- Unions. ” * executive Officer. Raid vecterdnvr 


risen to 70 per cent with 
around 34,000 of the 50,000 


oil rigs should be equipped with 
missiles and other defence 


confanue ^ working. SouUMm£ 


dtojpuon afoer a ^accession of ■*Z.“2SGr£g?2i 


members who joined before S7St^ns to protect them, from 
last June renewing their sub- potential attacks, Hr John 


disputes. 

Passenger ferries 


Places of entertainment such as 
Lord's cricket ground. " • ■ 


is. In addition the Loveridge (C Upminster) said 

supervision but that still leaves 50,000 . or so members who yesterday. The Falklands crisis 

the police investigating com- joined after June 1981 will also bad highlighted the need for 

plaints against fellow officers.” have a vote. such protection, he told the 


Inquiry into Ulster industrial aid schemes 


Metal workers pull out 
of amalgamation talks 


BY LYNTON McLAIN 


THE GOVin-tNMENT has begun when a dozen or so” had Shipbuilding at Harland and 
a review of industrial develop- invested in foe republic. Mr Wolff in Belfast was subported 
ment incentives in Northern Butler said Japanese investors by direct aid from the Govern- 
Ireland to find out if cost - were put-off by foe “ perceived., ment of £7,000 a year for each' 


promote, the Northern Ireland ? k)n - 1148 no chance, of becom- 


such protection, he told foe 

Commons. •* ff.- ' 

Loveridge. introduced a tfT 2,1 1121 IfT*) YY12 
Naval Defence and Merehimt 

Shining Inquiry Kil. requiring BY SKUM groom iMram ms 
foe Defence Secretary to. set w enooM, zjukxir STAFF 

an inquiry into foe possdbiHty TnnnA- . ' . - 

of mtroducmg increased protec- f, ■ .rtWWBtrong National 
tion. It has no chance becom- Umo ? of Sheet Metal Workers 


Department of Cosnmexce said in ^' 


effectiveness can be improved, image . of 
Mr Adam Butler. Minister of province.” 
State at foe Northern Ireland Northern 
Office, told the Commons trade « best pad 
and industry select committee incentives 
yesterday. Butler said 

Mr Bufler said measuring levied onJ 
cost-effectiveness was difficult, pniration ta- 
bu* foe review was designed to 
see if foe relationship between Northern 
schemes could be changed to capita levi 
make the best use of available financm su 
resources. higher than 

Sir Peter Emery. (Coil, where in tb 
Honiton) asked why no but this ws 
Japanese companies had in- of high nna 
.vested in Northern Ireland province’s s 


Northern Ireland has the 
“ best package of industrial 
incentives in Europe,” Mr 
Butler said, but the republic 
levied only tow rates of cor- 
poration tax: 


foe job, a level of subsidy which Mr 
Butler described as “very high, 
the the highest in the province, and 
rtai one which is not acceptable ” 


in written evidence. 

However, these two categories 
alone would not generate “ a 
sufficient flow .of foe right kind 
of new job opportunities. The 
need for more expensive new 


however. 


This, along with the legal prob- 
lems in foe AUEW’s federal 


■ Mr Larry Smith, foe TGWITs 
executive officer, said yesterday: 
“The resolution provides a bare 
mini m um of support for low- 
paid workers on -Government 
contracts. Tebbit aims to put 
fown back to 19th century con- 
ditions as far . as wage rights 
are concerned.” 
r Resolution 94 comes up for 
„ between September 
1982 and September 1983, and 
must be renounced within, that 
period. The Government is also 
considering . renouncing ' resoln- 
. tion .'■26* which covers wages 
councils — -thouyh thl.^i does, not 
come up for review until 1985. 


pressure on parliamentaoy time. 


voted overwhelmingly at Its structure, meant «St ttaTtm! 
^ ie ^ a L,^2!!! n “., ye9te ^ ay y. ears talks could ^ Sn. 


®b Qr t Brofoers, the aerospace overseas • investment, therefore, 
company in Belfast, had a “ very remains,” foe department said. 


Advice on first aid -’ 
dressings at work 

EMPLOYERS are to be advised 


BA cabin staff 
dismite settled 


^S to ^^? maxnaJ€amation tlnue - not Mn " dispute settled 

SfonSEn^i e eeriS?^Sora on?di^?5, ^ e , ATJEW would BrOur Labour Staff 

Delegates at Hove derided to ne pokries BRITISH AIRWAYS - inter- 
open discussions with AUEW- ye ^ aim . ^ S!?^ ental .flights from London 

Taa. the engineers’ leftXing. IZ&AteZLjZ He*toow ni^rt have retnrnea 

white-coHar section, and the - „ e acmevea. to normm, after a dispute with 


By Our Labour Staff 
BRITISH AIRWAYS - inter- 


■ to J? onn *I» a dispute with 


Northern Ireland had a per 
capita level of Government 
financial support 35 per cent 


positive future, making missiles, 
aircraft and aerospace struc- 
tures.” The proposed develop- 


on where to get sterilised first ] Transport and General Workers' 111 J ^ n Mortimer, general I'* 8 ?*? staff was settled yesterday. 


The average direct cost of aid dressings, in a Government I Union, to discover the terras for of the Labour 


each job promoted In new over- drive to cut foe risk of acrid en- j a possible transfer of engage- addressed 




back and remained a “ hig h risk 


higher than that available else-' project,” Mr Butler said, 
where in the United Kingdom, -Jobs in the small firms sector 


but tins was justified because of Northern Ireland industry 
of faugh unemployment and tbe and in established indigenous 


province’s special needs. 


industry are the cheapest to 


(both at 1979 prices). In con- 
trast, the comparable direct 
costs for cadi job promoted in 
medium to large domestic com- 
panies were £9,279 in 1975 and 
£5,620 in 1979. . 


tal contamination, Mr 'Kennfo 
Clarke, Health Minister, - 
announced yesterday. 

This feftows publication of a 
report on foe issue, ordered last 
December after a scare over 
contaminated dressings from 
India reaching foe British mar- 
ket, 


The staff objected after a new 
shift pattern was introduced on 


meats. These could be recon- f«reuce and saressed foe irrele- tranSaHantic routes in February 
mended to a special conference ®*. Mr, Norman Tehbit?s ^ of BA’s rescue plan, 

within 12 mrinths, : Employment Bill r^c yiclaimed it caused jet lag 

Mr George Guy, left-wing Problems oFferitaik. 'S- a '.z -_i-. staest - \ ' 
general secretary of foe Sheet He said foe Bill aimert -da t . ^Promise yesterday 

Metai Workers, said the policies tow one of the basi Tpriudplto t r °^. wl A th S w ' 

pursued by the riRfat-wtae of foe trade union JLSSSS® fFrS fro . m ^ Angeles mid 


W3<th another. 


staff savings are nrhlruW 


S3 

- . 


7 



for 

EEr 


Jjfoaneial Times Xhursdas Jane 10 1982 


FINANCIAL TIMES SURVEY 


Thursday June 10, 1982 


tc a&S> 

** 

in* -.r P'^nuin 1 ^ ; 

ioi s ?: 3 ^> 

c - t-r uhh * 


itw*e»* ‘? e 'J5* J*, 

* of 

. .. . ;•?!>* ’ , ' *< 
*':•: ...,' Vji > ' 

of n --'. 

*^a«nL v *5* 

36, -*s £3J 0 

2 for>, flttg.'* 

’he i,^ U **, 1 

j* 1 ** ’!£?$ 

•• ** tZf'r 

»*& 
s »;• ^ 

:■--- :y":.; •* '** 
r; 

V. 


aRv «CS STRIKE 


rfi piiTnon'.s 
*-lIer 


■•'■' M- 15. 

®W» J 

.^•W5 £ 


n to scrap 
r n uses 
-m attacked 

•• Lai-J*--’ = -~' 


, .ohin^ 
1 ' kJ " ..-trie* 
...vie > tl “ 
4 - *.:... : 




no. 



y 


The inherent differences between the Basque Country and the rest of Spain hare traditionally 
beeti a source of mistrust between the Basques and Madrid. Relations over . recent years hare improved, however, 
helping to repair the damage caused by the repressive policies of the Franco r^ime. 


Strong belief in a 


BY ROBERT GRAHAM 

THE! WAY many Basques talk, 
the differences between, them- 
selves and the Test ef Spain 
appear more important than the 
similarities and common ties* 
The extreme view is that the 
Basque country, . Euskadi, has 
ended up In the Spanish state 
via the unjustifiable quirks of 
history, and the less there is 
to do with Madrid the better. 
Yet even moderate opinion, 
which has fully understood the 
futility of seeing Basque inde- 
pendence, still believes strongly 
in the idea of * a separate 
identity ‘ for ' the Basque 
Country. ./. 

.That the Basque country and 
its people are different is 
obvious even at the most casual 
glance. ' Basque nomenclature, 
full of Jjs and Zs, is a constant 
reminder that Europe’s oldest 
language obstinately s u rvives. 
The scenery — pine-covered 
mountain slopes . and narrow 
fertile valleys 'with houses 
reminiscent of the Alps — is in 
stark contrast to the open 
plains to the south in CastUle. 
The 1 montains protec ted and 
isolated the Basques .from 
Moorish domination and made 
them look to the sea and 
northern Europe. It was no 
accident that one of Spain’s 
leading banks. Banco de Bilbao, 
established a. presence hr Lon- 
don and Paris before It did. so’, 
in Madrid. 

Climate and geography 'have 
forged a proud, hardy race with 
a strong -sense of ..comimmity 
and cultural heritage. j.The 


emergence of the co-operative 
movement, based around Mon- 
dragon, is a peculiarly Basque 
phenomenon whose success de- 
rives greatly from a spirit of 
fmnTnfm Basque endeavour. 


Competitions 


It -is carious, too, how the 
Basques are distinguished by 
the physical nature of their 
Sports. Felota, the fastest ball 
game in. the world, evolved here. 
The Basques still amuse them- 
selves with such activities as 
tug-of-war, rowing races in long, 
low Ashing 1 gmarirg and stooe- 
pfting competrans. They have 
provided, and continue to pro- 
vide, the most illustrious names 
in Spain in football. 

. Wedded to all this is an 
ancient form of local govern- 
ment-elected councils - which, 
in turn," elect a council of 
councils which meets, at Guer- 
nica. The councillors, or 
Junferos, swore allegiance to the 
King Sn front of the Tree of 
Guernica; the King, in turn 
granted the Basques certain 
rights and privileges known as 
fueros. ’* 

These ancient rights' were 
suppressed by: Franco,, who 
ended the Republic's effort to. 
concede autonomy in his drive 
to cement the unity of Spain. He 
also, never forgave the Basques 
for siding with the Republicans. 
The use of the Basque language 
was : banned and a deliberate 
-attempt was made to eradicate 
the ^Basque identity. The con- 


sequence of those policies, 
which were backed by heavy 
repression, was a general resent- 
ment of the central government 
in ' Madrid and a radicalisation 
that led to the emergence of the 
militant separatist organisation, 
ETA. 

' The damage caused by the 
policies of the Franco era will 
take time to heal. Yet it is 
remarkable, given all the errors 
and continuing mistrust bey 
tween Madrid and the Basques, 
that so much has been achieved 
in such a short time. The main 
public image of the Basque 
problem is that of ETA ter- 
rorism, and of violence. 

- The continued existence of 
ETA should not be minimised, 
but it should be put in context. 
The Basque Country now has 
an autonomy statute — agreed 
in July. 1979, and subsequently 
endorsed by referendum — 
which goes further than the 
autonomy granted under the 
Republic. Moreover, the 
Basques now' have politicians 
democratically elected at muni- 
cipal and regional levels. 

The hard line voice; in favour 
of ultimate independence and 
of ETA, accounts, for about 20 
per cent of the Basque vote and 
is expressed In the form of the 
coalition, Herri Batasuna. A 
new left-wing group, formed by 
Euskadiko Eskerra and a break- 
away rump of the Basque 
Communist Party, probably 
accounts for another 10 per 
cent The latter is against 
violence. . 

The vart majority is behind 
the' conservative Basque 
Nationalist Party, PNV, which 
runs the Basque ! Government 
and has a finger in virtually 
every pie. , 

The legitimacy "of the PNV 
cannot be called in question. 
Many of the present PNV mem- 
bers are former ETA sym- 
pathisers. . 


'™J‘ 6MPDZCM Jf 

"*^vV°IIOHD!AGOH 


SEBASTIAN f"" 

m r /France 

nrtriu 


/W JLJY1 

V? VITORIA 0 


PAMPLONA 

o 


• tr, A MHIIE 


1 .5 N 


FRANCE 


If? 

SPAIN 

m*b . , 


By giving dear proof that 
things are working better, and 
that . the Basque country is 
being run by Basques, the PNV 
hopes support for the ETA mili- 
tants will be eroded. In the 
18 months since the autonomy 
statute went into effect, the 
Basque regional government 
has gone about its task with 
extraordinary thoroughness. 
The centre of regional admini- 
stration is now firmly estab- 
lished in Vitoria, housed in a 
converted sanatorium. 

The Basque Government now 
-has control over education up 
to university level and Basque, 
Euskera, is already taught in 
primary schools. A Basque tele- 
vision station is being built and 
is due on the air in 1983. The 
first 600 Basque recruits have 


Mika 50 


passed through a Basque police 
college. 

An indication of- the 
systematic way in which Basque 
solution are being pursued is 
even more evident in industry. 
There the Basques have created 
a precedent by forming an in- 
dustrial holding, company to 
promote industrial development 
and reorganisation. This is 
specially significant in a region 
which is heavily dependent 
upon base industries, such as 
steel and engineering, which 
have been badly affected by the 
recession. 

The Basque Government is 
acutely conscious of the damage 
done by the recession, and of 
the. danger of letting unemploy- 
ment continue to rise, at present 
about 16 per cent. Companies 


have been progressively 
decapitalised. 

Blame is readily heaped . on 
the uncertain political situation 
and the activities of ETA — 
but there is nothing 
to suggest that Basque .Capital, 
which has generally gone to 
Latin America or to property 
in southern Spain, would have 
behaved much differently if 
ETA were not in- existence. 
Spanish capital in other re- 
gions has followed a' similar ■ 
pattern. ETA has a “revolu- 
tionary tax” and is willing to 
kidnap and threaten if demands 
are not met. It is also true that 
several Basque businessmen 
have left for fear of their lives, 
or out -of an unwillingness to 
pay. But they are a minority 
and there is no evidence of 
foreign companies being' 
touched by such pressure. 

Terrorism has declined 
sharply in the past year due to 
improved action by the security 
forces. Matters would improve 
further if the French authori- 
ties cracked- down on tfte ETA 
leadership residing in France. 

The Basque government 
wants to have mudh greater con- 
trol over police action since 
such supervision, it - argues, 
would remove the need for the 
large presence of the Guard ia 
Civil and national police. (One 
of ETA's main demands is for 
the removal of the security 
forces!) 

The Basque government also 
argues, that it cannot be held 
responsible for what happens in 
the region when so mudh of the , 
Anal say . Sim ’ remains in 
Madrid. Of course, friction . 
with Madrid arises .thereby. 
Since the abortive military 
coup of .February, in Madrid, 
the central government of Sr 
Leopoldo Cato© Sotelo, in fall . 
agreement with, the Socialist 
Party/ has adopted a far more 
restrictive view of autonomy. 


' • if :^ x>qnteN7 


Steel: battling against the recession D 

Energy: gas discoveries increase hopes of more self-sufficiency n 
Shipping: private companies fare best m 

Mondragon: the successful experiment in co-operatives m 

Medium industries: getting together to ease the strain IV 

Banking: hoards remain a who's who of business IV 

Economy: emerging from its worst ever crisis V 

Culture: the bid to revive a language V 

Politics: nationalism the key factor VI 

Profile: President Carlos Gaiaikoetxea VI 

Navarre: the disputed province VI 

Editorial Production: Mike Smith 
Design: Philip Hunt v7 


For Instance greater local 
control over the police is out 
of the question. 

Ignorance 

-Under all this lurks, expert- 
ally in Madrid, an enormous 
ignorance on the part of each 
side about how the other feels. 

The common interest of the 
Basques and of Madrid is un- 
derscored by the fate of the 
controversial nuclear power 
station at Lemoniz. By assassin- 
ation of- the. plant's chief en- 
gineers twice since February 
1981, ETA first paralysed, and 
now has temporarily halted, 
work on the $2bn plant lit ie 
more than two-thirds complete 
and of vital importance for the 
energy needs not just of the 
Basque country but of Spain as 


a whole. Neither the Spanish 
Government nor the autoDomous 
Government can afford to see 
ETA triumph by stopping such 
an important capital project 

More generally, the will to 
make things work is under- 
mined by the increasing 
political instability of the 
ruling Union de Centro Demo- 
cratic© party and the prospect 
of early general ejections from 
which no party would obtain 
a majority. 

So at a crucial time, when the 
Basques need to flesh out their 
autonomy statute, there is in- 
creasing confusion about with 
whom they deal in Madrid. In 
the long run, nothing will hurt 
Basque autonomy, and the pros- 
pects for an end to violence, 
more Wvan frustrated aspixa- 
tions. 



country 




Thanks to a Statute of 
Autonomy approved in 
1979, the new political 
co mmunit y known as 
Euskadi (Basque Coun- 
try), has its . own Parlia- 
ment . and ' Government 
with,- amongst other 
’matters, powers in "the 
promotion, development 
and ' planning : of 
economic activity within 
the .Basque territories. 

Basque Government 
plaiis foresee an increase 
. in public investment to 
4 §.. times "the previous 
level and to 5 times the . ' 

level ' in technological innovations within .the 
present year. Devolution gives ther local civil 
service greater fatalities in granting; authorisa- 
tions, setting up industries, and other; relevant 
measures. The Basque Country, moreover, enjoys 
a special tax and financial status which strongly, 
promotes andsupports investors. 'j 
Furthermore, the Euskadi offers one the most 
complete industrial infrastructure in the Spanish 
State, with 38,000 factories 1 and workshops, a 
thoroughgoing auxiliary indnshy specialized in 
components, supplies, subcontracting and a 
complete electrical supply network, high techno- 
logical standards, competitive prices, fully skilled 
manpower and qualified middle management. 



The Basque Autonomous 
Community is the home 
of the Bilbao Inter- 
national Pair, where 
• a broad range of- 
.specialized technical ex- 

- hibitions is held. 

The • Basque Country, 
with its two inter- 
national ■ ports (Bilbao 

" and Pasajes), three inter- 
national airports (Bilbao, 

- San Sebastian and 
Vitoria-Gasteiz) and ex- 
tensive railway network, 
motorways and ’ trunk 
roads,- provides ample 

• . logistic, support at the 
communication and transport levels. Its privileged 
geographic position ensures excellent contact with 
the rest of Europe. "• 

The enterprising spirit of the Basque businessmen 
■ experienced in -airfields of industry, the avail- 
ability of a highly, qualified workforce and the 
existence of a. well consolidated financial structure 
complete the picture of this Country which, 
through its, drive and make-up, has become a 
spring-board, towards markets throughout the 
world. 

For further apply to: 

Department of. Industry and Energy,. _ 

Basque Government, Duque de Wellington, 2, 

Vit&riOrGasteiz, Alova , Euskadi. Spain. 

Telex: -31681. and 31682 EUJK E Tel: Spainr45-246m 



IBERDUER0.S.A. 

- THE LEADING SPANISH ELECTRICITY y ’. 
-* ORGANISATION 

TOTAL INSTALLED POWfR j. 5.297 
HYDRO- ELECTRIC POWER ? ~ -..3:7 77 MW.^y 
TOTAL OUTPUT— _J4.217 QOO.mO k^^p 
■ HYDRO-ELECTRIC^ ^ . /; ; 

v OUTPUTS _„„6 k 675. 090 OOOkW^^ 

* EQUIVALENT 10,28, 7 % OF SPAIN'S TOTaS'-^I 
$ HYDRO- ELECTRIC OUTPUT ^ "* 






• - - x- ^ V f 

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M**m*W>: 11 J 



- ‘ . - . . .. * 

v — > rf i - j&xu? *** & i r 

y* > r;|: .*•$; ‘'X "Lff’' ~~Y ... - it 

9 ^ **^$X**4 





’ ----- 


, .'.V“ . 


BASQUE COUNTRY 


-V*i 

< . 



3 THERMAL POWER PLANTS 
67 HYDRO -ELECTRIC POWER PLANTS":'; 

4.900 employees 

1.107.000 customers " 

106.000 SHAREHOLDERS 


GotonoVasco-EuskoJaurlaritza 


•-V.-'.rV '• 





: mcm-Qismz(sBm) 




-®©(SOS®SS9fiS®S500S©OS®9S5flS009«SS«SS©90©iaf5at55S5SSSSS i 5S5SaSfl9®©S'; 


1 I 


THE BASQUE COUNTRY II 



Private company, benefits after Government agrees to restructaring plan 


LABOUR COSTS AS A 
.PE8CENTA&E OF SALES 


State aid boosts chances of recovery 


XO SECTOR of the Basque 
economy has been battered so 
badlv by the current recession 
.is ihe’ steel industry — his- 
torically the foundation stone 
of Basque wealth. Spawned in 
the middle age of the British 
industrial revolution, when 
shipping companies carrying 
iron ore from Biscay to England 
were persuaded by Basque 
interests to return Jaden with 
coal, the steel industry - became 
the heart of the most advanced 
economy in Spain, allowing the 
Basque Country to beat to the 
rhythm of North European dev- 
elopment. 

But the heavy' concentration 
of steel concerns in the Basque 
Country, where along with the 
related activities of ship- 


building and capital goods 
production they account for 
nearly a third of -industrial 
activity, has emerged in the last 
eight year? as a major struc- 
tural liability, making the 
region as vulnerable as a single- 
crop agrarian economy. 

The Basque Country accounts 
for over a third of Spain's 
integrated and basic steels 
output and some 70 per cent 
of special steels- production. By 
1980, total losses in the Spanish 
integrated steel industry had 
climbed to Pta 34bn (£181m), 
with special steels- losses up to. 
Pta 6.5bn. 

Altos Hornos de Vizcaya 
(AHV). based on the heavily :■ 
industrialised left bank of Bil- 
bao’s River Nervion, is one of 
Spain’s three integrated steel 
concerns and ' the only one 
remaining in private hands. 

Founded 80 years ago fronf 


the fusion of three 19 th cen toy 
steelmakers, AHV was-. last in 
the black in 1976, when ' it 
scraped a modest Pta 704m 
(£3.7ru) profit. In the last five 
years -it has ..accumulated losses 
of Pta 41bn, ending last year 
with a loss of Pta 10.46bn. Its 
financial position had been 
eroded to such an extent that 
by April 1981, its toral liabilities 
: had reached 'Pta 54.7hn against 
capital , and. reserves of some 
Pta l&bn.-' i • - * 

Yet AHV looks to have been 
given a new chance. In May 
last year, the Spanish Govern- 
ment .finally agreed on a 
Pta 165bn restructuring plan for 
the ' integrated steeL sector as 
a whole, Pta 53.66 h of which 
was 'earmarked for AHV. . 

The results so far' look prom- 
ising. AHV figures for the first 
quarter of this year show that, 
the company’s cash-flow was 


back in balance, against last 
year’s negative cash-fiow of 
Pta 6.5bn (prospects -for this 
year have, however, suffered a 
heavy blow following a freak 
fire on March 25. which com- 
pletely destroyed the electronic 
controls of AHVs hot strip 
rolling mill, the nerve' centre 
of production). 


Complications 


Spain’s steel industry com- 
bines the Ills endemic to the 
industry elsewhere — excess 
capacity, heavy financial over- 
heads, and surplus. labour — 
with a number of specifically 

local, aggravating factors. 

Both the Government and 
the industry were slow to re- 
act to the recession partly ber 
cause of the political complica- 
tions of the transition from 
dictatorship and partly because 





m 


^ 


they. failed- to . appreciate ihe 
difference ‘ between this reces- 
sion and' the.* traditionally 
cyclical natnxe'-of the steel in-' 

d us try. 

As a result; the recession 
“arrived later" in Spain, and 
caught the steel industry, on a 
wave -of ' expansion. The in- 
dustry still has the' capacity to 
produce some 16 m tonnes of 
steel a year,' against - national 
demand of just over 8m tonnes. 

At the same ' time, wage set- 
tlements in the industry were 
consistently above levels in 
competitor countries, - while 
most producers had developed 
an -easy reliance on cheap 
money, making them extremely 
vulnerable - as interest rates 
were gradually liberalised. 

- Between 1974 and 1980, for 
example, AHV saw Its labour 
and financial costs triple, to 
‘ total 34 per cent and 17 per 
cent . respectively of all costs- 
! During the same period, AHVs 
| production rose by only 78 per 
cent In 1980, the inability 
to meet payments to suppliers 
regularly began a period of in- 
termittent raw material short- 
ages. AHV put the cost of such 
shortages in 1980 at Pta 1.07b n. 

■■ A further and particularly 
damaging element in the 
scenario was the Industry's al- 
most total reliance on the 
local market, made captive by 
the high tarriff barriers intro- 
duced by Franco. 

In 1974, the first year the 
recession began to bite 'in 
Spain, the sector as a whole 
exported only 9.3 per. cent of 
production of 11.47m tonnes; 
by 1980, it was exporting 46.8 
per cent of production of 
12.67m tonnes, five times the 
amount 

As domestic demand- 
oollapsed, recourse to foreign 
markets averted complete 
debacle. But Spanish producers 
arrived abroad after most of 
their better-placed competitors 
and had to accept prices 


between 1 !j and 30 per cent 
lower than at- home. ' 

The GoyerhmehV the . lute-, 
grated steel companies, and the 
major trade unions began talks 
on the crisis in 1979. As a prior 
measure, the State holding com- 
pany INI took over Altos 
Hornos . -del Mediterraned' 
(AHM), 46 per cent owned by 
AHV. where a cold strip rolling 
mill had been completed' in the 
first phase of a three-part plan 
aimed to service the . increas- 
ingly depressed car and domes- 
tic appliance industries. 

Finally, an overall- plan 'for 
the sector with funds of 
Pta 165bn available was pub- 
lished in May last year, the 
main objectives of which are: ' 

• to reduce finanrial and 
labour costs to 8 per cent and 
23 per cent respectively of all 
costs by the end of 1983; 

• to carry 'out investments 
designed to boost productivity, 
iron out bottlenecks, and make 
production of the three major 
companies complementary; 

• to reduce raw material and 
energy costs; to co-ordinate 
trade, fix production quotas 
and decontrol prices; , 

• to cut the labour force by 
5.800 to 32,400 and reduce wage 
rises to 70 per cent of tile con- 
sumer price index (giving 
settlements of 9 per cent in 
1981 and 9.5 per cent in 1982). 


. V . TAlffiETS UNDER 
' RE5WCTORW6 -- 

- ; k * ^ 


i : P6RCEHTjflgE OF SALES 


1976 1977: V 1978 1979 1980 WBT 1982 '1983 


funds of- Pta 25bn, for which 
the State stood guarantor. The 
Industrial - Credit :Bank 
provided another- Pta 12.7bn. 

Further funds are .premised, 
for a continuous casting mill, 
with major investment in new 
installations designed to: resolve 
existing. bottlenecks and 
balance out an inefficient, pro- 
duction process. \ f ... , 

AHV has shed LWQ/of -the 
1,800 jobs. it plans- to cut r 
entirely by voluntary redun- 
dancy or eaHy ■ retirement. 
the first years of the .re-struc- 
turing plan> it has managed fo 
stabilise its labour costs and 
reduce its financial costs from 
17 to 12.7 per cent of all costs. 


New funds 


Agreement oh the measures 
was held up because AHV — 
unlike AHM and the other 
Integrated steel producer in 
the State sector, Ensidesa — 
owed its private bankers hearty 
Pta 16hn, as well as owing the 
Government nearly pta 20bn in 
tax and social security arrears. 

The arrears were consoli- 
dated, Pta 14.7bn of the bank 
debt -was rescheduled (the 
Banco de Vizcaya wrote off 
Pta 1.2bn) and the private 
banks agreed to supply new 


The Basque special steels 
sector, also readied Ihe' water- 
shed year of 1980 in critical con- 
dition. Productivity' had -fallen 
below half that of its inter- 
nations' ■ competitors: losses fot 
the year: rose to "Pta 8.5bn; total 
liabilities climbed to Pta 76bn; 
over 40 per Cehtof capacity. *vas 
lying idle; and, while exports 
had tripled in. seven years, Inis 
was frequently achieved by re- 
sorting to marginal markets at 
ruinous prices. The , situation 
was further exacerbated by a 
price war at home. 

At the end of -1980,. a mini- 
restructuring plan - was put 
forward,- to be. administered 
through .a, holding company, 
Ace rial es. representing seven: of 
the- major, concerns.- 


Aceriales has initial funds of 
pta 9b n — provided .-largely by 
the central and Basque Govrfh- 
ments — though its * .financing 
needs are likely to .grow.' Jt 
exists to c'orotdinate marketing 


strategy,, help - introduce new" 
technology and -channel funds. 
In its first phase ithas presided 
over some 2,500 rfedundandeS" 
in 'a complex scheme wfaMi' 
aims to relocate some workeri 
and provide ' • comparatively 
soft financial cushions for 
others. Though slow to start 
the project - is. showing some 
-signs-; . of - success: 1 SA' 
EHieyesrria, for .example, where - 
most -.-off the redundancies 
o.ccurred, has hegnn to ton 
round front p eak-Jhseerpf some 
Pta 3bn fa 1979 to' a branded 
casb-flow so fdr.tWs year. . - ' j ; 

But though the Basque: sted;. 
industry _ jhaA-rhad - surprising, 
initial success in its efforts to, 
surmount the .current crisis, !- 
there -- are ' stilt, question maita 
hanging over its lutnre^TWfewi^ 
Spam enters the . EEC to 
example, ■ the- gradual dis- 
mantliug . of tariff barriers 
(currently, averaging some IMS 
per cent on .most steel products) 
wffll shandy test the resilience 
of loqsd industry. . «'■' 

Fui^er." pressure,; partifeub-- 
larly abroad, wilL come from the' 
newly developing - coiintrles. A 
recent study by. the Caji r 
IAboral Popular, of Mdndfcagwi : 
on. Basque-' unemployment 
argues ' that the majority.; of 
Basque steel products /are - 
potentialy ^threatened by the 
newly industrialised economies. - 
The industry's ’ability to meet 
these' challenges will depend iau 
how fftc.lt can identify ihdde— 
velop product areas in vrtdch it 
can continue its forced march 
towards competitiveness. 


David Gardner 



Deaths of chief engineers halt work oh Lemonii power station ; - • 





1 Mg% 9I<A 

Vvv (I 1 C 


Plan to increase self-sufficiency 
threatened by nuclear protestors 



ENERGY 


to Europe 


And there is no turning back with a future 
that offers a great deal, but which also 
implies a tough technological, commercial 
and financial challenge. * 

Petronor was born in 1 968 and has accepted- 
that challenge -since then. - ^ 

All its activities have been aimed towards 
Europe. 

Now when times are.difficult, Petronor can . 
look ahead with confidence, because it has 
established the foundations so that this 
confidence will be possible. 

A crisis-proof solid financial standing. 


A material base proved by two refineries 
with' sufficient capacity to process 1 2 million 
tons of crude per annum, a super-port and 
one of the leading European tanker fleets. 
With significant results: like becoming one 
of the ten’largest industrial companies with 
the highest sales figures in Spain; it has 
been awarded the Golden Medal for Exports 
and- has been declared and Exemplary 
Company of the Social Security.. 

Petronor: Men and means facing the future. 
No matter how difficult it is. 


produced primary energy will 
awing from just under 2 per 
cent to 41 per cent by 1990. 

It is an ambitious undertak- 
TOP PRIORITY has been ing, underlined by the choice of 
given to evolving an energy „Sr Javier Garcia Echogeaga to 
policy that coincides -with the head the Basque Government's 
Spanish national energy plan key portfolio of energy and 
and provides greater Basque industry. Sr Echogeaga, like 
control over — and use of — many of his Basque technocrat 
resources. ■ colleagues a product of the 

The starting point is a simple Jesuit university of Deusto, has 
fact. The Basque Country is been recruited from a top post 
profoundly dependent upon im-' in the Ministry of Industry in 
ported energy— either in the Madrid. He has .been familiar : 
form of electricity brought in with Spain’s national energy 
from other parts of Spain and plan from the start However,. 
France or via imported- coal and in the case of the Basque Co un- 
energy products used in try’s own policies there are 
industry and local power some interesting differences and 


generation. 


refinements he has now pro-. 


This dependence will be sub- Pfsed. The national energy 
stantially reduced if, and when, plan pays a good . deal ■ of lip 


the Lemoniz nuclear plant near service, to energy conservation 
Bilbao is able to operate. How- but Sr Echogeaga hajs taken 


PETRONOR 


Refineria de Retro leos del Norte, S. A. 
SPEARHEAD IN NEW DEVELOPMENT 


jocsosoeo©©oooo©9©sooo©ao®oo©oooo©ooooooooofio©oeo©eoooo6oobeooo«ooo90ooooo©sobooooooooeooooh 


ZAYER Milling Machines, with JSIumerical Control 
or Electronic Copying Device 


ever, work on the twin 830 Mw matters further in the 'Basque 
plant at Lemoniz has been effec- Country, 
lively stalled since February In December the - Basque 
1981 . and formally paralysed Government established a study 
since May 1982 as a result of group, CADEM, to' stimulate 
a concerted campaign of ter- and investigate energy' conser- 
rorism by ETA designed to vation. -Since industry accounts 
ensure that it never, works. for 67 per cent of dnergy con- 
The Lemoniz issue' cannot be sumption in the Basque, Country: 
minimised but nevertheless it* it was felt that ..there was a 
should not be allowed to special need -for closet study of - 
obscure a series of very impor- energy saving . measures. (Thq- 
tant steps taken by the Basque biggest industrial -user is steel, 
Government which will have a using 58 perpeht of the sector’s* 
major long term impact on the total.! Improved conservation 
region's energy picture. . methods should lead to saving" 
Possessing . no major rivers the equivalent of 750,000 tonnes 
the Basque Country has tradi- of. crude a year by 1990 — 10- 
tionally relied upon tapping the per cent of primary energy 
hydro-capacity of neighbouring supplies, 
regions. Indeed it was the ; ■ m 

energy demands of Basque Deposits 
; industry which early on led ■ r 
Basque engineers to be in the A . much bigger project 

forefront of Spain’s develop- involves , the utilisation iff gas, 


meni of its hydro-resources. Here the discovery of encourag- 


Model 3500 BF-3 with 
TNC-145 Numerical 
Control and cassette 


Currently under 2 per cent of “8 deposits'of gas offshore near 
hydro-electridty comes from Rermeo Kas completely altered 

si. tU . n - _ I ttin sla _ t.1. « A 


K 


OTHER PRODUCTS 

—Machining Centres 
—Bridge type Milling machines 


—Moving Column milling 
machines 


within the Basque country, the .picture in the past 18 
while almost 2U per cent of months.. The discoveries, made 
primary energy needs are by . Iniepsa, the domestic 
covered by hydro imports from exploration arm of HispanoiL 
outside — usually via the private have yet .to he fully assessed.' 
utility, Iberduero, which has However, cantious estimates 
been the dominant factor in suggest minimum reserves of 
power generation. Iberduero’s gas. equivalent to. 10m tonnes . 


If Eermeo proves as promising 
as indicated the . preqeoftge 
could be much higher. 

He says that development of- 
the Bermeo gas.will^cost some 
Pta 41bn t while c & further 
Pta 20bn will be' jSpgfct in 41s; 
iribution.' This will provide ah 
important ' boost to unemploy- 
ment— about 2,000. permanent 
jobs alone— and*: -cany. £ big- 
-spin-off for the Basque .steel ind 
engineering indusuy.' ‘' Actual 
gas distribution will, .be via a, 
subsidiary of a .hewly created 
Basque energy- : : - holding/ 
Soriedad fle /Gas; Natural, 'Pel* 
Pais Vasco, ‘in which' Emagtis 
will have a minority .stake. 

The energy holding company 
will, have as its main task the 
operation of the . Lemoniz Plant. 
-This plant tuntoubtedly poses 
the most dpllcate energy prob- 
lem.' Site work began on the 
.plant in 1972 but Iberduero only 
obtained full licensing permis- 
sion from the local anthorities 
in 1976. • : - 

From its Inception the plant 
has been - controversial both 
because of the siting so close 
to Bilbao and because Iberduero 
was regarded by the left and 
militant Basques as the- epitome 
of ' the Francoirt financial 
"bunker.” But organised pro- 
test against tjife plant, which an 
one decasion saw over 100,090 
persons in^the streets of Bilbao, 
■has been pushed into, the back- 
ground by ETA’s violence since 
.1977/ 

Initially attacks were directed 
against the construction site 
itself and ETA even succeeded 
in damaging one' of the genera- 
tors. Lattetly ETA has switched' 
tactics. On the cine hand.it has 
singled out Iberduero installa- 
tion throughout the Basque 
Country, causing serious loss of 
generating capacity at times: 
On the other hand ETA has 
singled out the vital technicians - 
working at the plant. 

In February 1981,. Sr Jose 
Maria Ryan, .tire chief engineer 
was kidnapped and then .assas- ' 
sinated after Iberduero refused 
to accede to ETA’s demand to .' 


' balt the-pLantf Then In May- 
198% -J-Sr 7 Angel/. Pascual, Sr 
ityaa-s successor, was assaSem- 
atetL- . .. " : . . v ; . 
•V The- laher- ltilllng came just 
Whan the flfewly formed Basque 
. energy holding was" due to take 
oye? operational control of 
Lemoniz, This Basque control 
. has Ireen a gainfully negotiated 
' compromise bettveen lberduero. 
the Basque Government and 
Madrid. Iberduero: - retained 
..ownership, the Basque Govern- 
ment operational control and 
■Madrid' responsibility for 
. security via the national Nuclear 
-Safety Council. 


Referendum 


This seemed the only way 
-ahead since the tetiinraans had 
declined to return in full foHow- 
ing Sr Ryan's death. The .Basque 
Government wanted a refer- 
endum to provide- greater 
moral backing for the. plant but 
this was unacceptable to Madrid. 

.In private- there has: been 
little secrgf about- the: original 
project being fil conceived so 
close to Bilbao. ^But- the Madrid 
Government could not afford to 
give .way to. the- anti-nuclear ■ 
lobby and more parlicalaiiy' tn - 
ETA . violence. The J Basque^ 
Government; equally anxious: to 
stand tip to ETA aSso 1 wanted. 
Lemoniz to go -ahead -because it ; 


provided the key to the region's, 
greater energy, in'dependencfc 0- 


greater energy ; independen cfe. / - 
The Wiling of -Sf-Pasciial bas- 
haw complicated matters fiir-. 
ther and ■ forced -Iberduero ; to : 
stop all work. The' stoppage is 
expected ' to ; last, at - least six 
months. Wheitiier . ^Iberduere 
stays with the project as fuB. 
owner .is uncertain. .It is also 
uridear .precisely how ■ • tech- 
nicians are going to be -p«v 
suaded to complete their: work 
at -the plant with. ETA menacing 
death. Despite this both Madrid 
and the Basque Government are 
adamant -in their ' commitment 
to seeing Lemom&^ ■■ function ■ 
sooner or later. r ' ' i 

Robert Grahani 





| i" * * * 


m 





mS. 



— Knee type milling machines 
— CNC Lathes 


capital is largely Basque in' of bIL 


origin and the two main Basque The Bermeo discovety has 


banks, Bilbao and Vizcaya, have been the catalyst for a project 


been its principal bankers. 


— Electric copying milling 
machines 


introduce gas . into 




Send for detailed catalogues to: 

ZAYER.. S.A. 

Apart ado 206 
Vitoria, Spain ; 

Tel: (45j 26 28 00 . 

Telex; 3S427 


Coal until recently has played Basque Country. Until now gas 
a declining role, accounting for has been used only on a limited 
18 per cent of primary energy scale in Spain with a network -of 
needs, while oil has covered the gas lines in Catalonia that has 
bulk t60 per cent). Within the now spread upwards to Sara- 
Basque Country there is no go&sa. The Spanish national gas 




cigamoQ 


INTERNACIONAL, S. A. 



nuclear power station opera- concern, Enagas, will bring via I 


tionai — the ?2bn Lemoniz plant, large diameter pipes the gas •to.1 
17 kms from Bilbao, would be the Basque Country — in turn [ 


CUSTOMS CLEARANCE. CONSIGN MSJT6, TRANSPORTATION, .■ 
IMPORT/EXPORT. WAREHOUSES. DISTRIBUTION, AIRFREIGHT, 
AND OWN RAIL, TRUCKS AND CONTAINERS TERMINAL 


the first. 


linking it eventually with the 


Given this situation, the European network. The gas will- 
Basque Government in March then be distributed, geared first 


drew up an action plan with and foremost to domestic use 
four main alms: stimulate ad then as a primary product M 


f 


energy conservation; introduce in industry. Distribution will 
natural gas for domestic v use. be the- responsibility of the 
and as an industrial ; raw Basque Government, 
material; support the operation In this way by ISPQ gas will 
of Lemoniz; accelerate the use represent almost nine per cent 
of coal, especially as an indus- of energy consumption, well 


SEEKS AGREEMENTS WITH COMPANIES 
IN THIS SECTOR WORLDWIDE FOR- 
MUTUAL BENEFIT 

SUGAMON 1 IVIl^EHN AOipN AL.S.A. 
J.i^AzWAR, a > 
BILBAO - SPAIN 


trial substitute for fuel oil. . above the average in Spain as 


£» *■ . O 

£es©sc©S5©9©©3©s©e©Qea9e©e»©©©9e99©9©es9©©©ee©©©©©«©e©«90©©©e««9o©s©o©©9e»9o«©©eos«©©o©oe©o© 


In this way it is hoped that a whale. Sr Echogeaga con- [ I 
the current proportion of locally siders this to be conservative. [ 


Also itti Madrid, Barcelona, fruh, PdrohJono. VJtorfa/HawIoye :! 

‘ • SUGAMON - Established \89S - :' r \ 


Pri 


• VS 

'itfS 


2.^ 


■®tV} 

5^.4 C 




V?<06' #- 

Ml 




w.- 




. 12 
Vli. n.r 




l 


7 




ginaTidal'liiaes IHnusdaff June 10 1982 


15 


THE BASQUE COUNTRY m 


Profits have dropped but group resists worst of recession 



a success 


MONDRAGON 


' “ analysis and management skills. 
Second in Importance is 
Xkeriari,/_the applied research 
' centre which combines the twin 

THE ■ nwch-admfred group or roles of'R&D and trailring, "the 
Basque industrial co-operatives latter in conjunction with tfie 
based- - on - the. Caja Lahore! group's schools and polytechnic. 
Popular (iiteraHy, ‘ . working it was here that Spain’s, first 
peoples savings bank) of .Mon- robots were developed and Its 
-dragon is managing not only To role in developing the tedmo- 
successfully resist the ■worst of .logical ‘ sophistication of the 
the .- re c ess i on, but to maintain ••group cannot be overstated.- - 

within tber 1 The third key component otE 
yelL . ■ - the superstructure Is Lagan- J- 

Are. wjfeich co-ordinates social 
a r\j prefers it) has cer- security, industrial hygiene and 
tapdy- faHen. sharply, in many health. Lasun-Aro (which in ■ 
case« into thejed, over the past Basque means “ sure ftiend ") 
five year* and the;; financial- has played a critical role in 
, position or over a dozeacom- redeploying workers “excess” 
pahies in the group, if taken (the word “ redundant ” is 
sm^y, has been severely frowned on) to the production 
eroded. ' , needs of individual units. .In 

Yet a recent analysis of the the 12 months to May This year, 
private sector by a Spanish 400 co-operativists have been 
employers’ think-tank places switched to new jobs,- leaving; ' 
the Mondragon group roughly just 18 jobless while there are 
m the middle m terms .of 180 vacancies into® group. ' 
profltabflity. And this,- one a further key structural' 
CLP executive ^ was - quok to factor is the organisation, of the 
poant out, Is - in. contest -with . group into subgroups, organised 
the survivors. In the Basque either in terms of geogra phical 
Comitry; where a recent CLP praxuufcy, produ rt??o5*S 
study estimates real un employ- hiiiity, or not infrequently, both. 

to Abe 2E9 per cent ^ resources of (these sub- ' 
(against official figures of IS- groups are common to aft its 
per cent),- -this -Is a major components apportioned on 
achievement the basis of need. Equally, iris * 

the sub-groups that cany out 
- Preferential most of the minor, redeploy- 

ment of personnel;. Isgim-Aro 



Mondragon town with co-operative ■ movement's , 
applied research centre , Uterlan, m the foreground 


76 


PESETAS BUUOM 


CflJfl LABORAL 
POPULAR 
DEPOSITS 



which' is proving to seine extent 
anti'cycUcal and is compensating 
for the group's -activities in 
more depressed sectors. 

Another perceived problem is 
the speed with which the Ularco 
group has moved into the export 
markets: from a base of practic- 
ally nil in 1974, Ularco last year 
exported Pta 11.6bn of its total 
turnover of Pta 30.4bri. 

The pace of foreign competi- 
tion and the necessarily 
Indisc rimina te choice of markets 
shows up frequently in -the 
figures. Fagor Electrotecnica for 
example, exported 75 per cent 
of its semiconductors in volume 
terms for -a return of only 52 
per cent in cash terms. This is 
a price the group is willing to 
pay in the short-term to' main- 
tain jobs. . 


the 


Restructuring 

, 0 Fagor plans to use 

The CLP group comprises 91 moves in when mote than 10 . . .. .. . . Pta 800m it will get frdm the 

industrial co-operatives, rising per cent of a plant's workforce Government, — as part of a 

tQ -154 units in -all when flsdeuil- anmlvpif • 650m, suosented tO' ay 1S16 rpqfntpturinrr nbn fnr thp aIpn 


. . restructuring plan for. the eleo- 

wbole group in proportion to sector— to overhaul its 


to 454 units m alL when agricnl- is involved, 
tore, consumer, . boosing, and nevomf the rmreffv 4w*nt- 

edncattoii (wito, .43 teaching menteTfevel, toJrever, Ss the ^“thrmembST^fte for ®S n saIes strategy, in con 

centres) cooperatives, plus the central fact of .worker-owner- ?£L5 ve ^!? vote^thonselve^a function with the already con- 
“second-degree" *? . ***&; strip. * the cooperative 28 IS siderabie Ularco . overseas sales 


resea^h and. HKlal se^ty adlustment to changing 
centres, .the. hank itseif) are w^ niymi p- wmiTmsft ny^ ^n d thi» 
added in. "flexible distribution of 

From the first workshop cm- -resources on the basis of 

ploying 23 founded in 1956,. the consent AH evangeUsm aside, ___ ««««„, — 

industrial group now employs the -efficacy oftoesuperatroc- America, the Mediterranean 


Another source of group 

as^asaasss 

deals with talks proceeding on 
The hank helps wain, more more— mainly in Latin 


18,700 people with a turnover tune derives from this. „, mn i D v *• — — — 


provides new ^vestment. (Turke y, Libya tod Morocco) 


and Hungary). 


CLP itself, since its foundation example, the largest of itoe. sub- „ contract to sumfiv disc brakes ,, 

in 1960, has seen its deposits . groups w*to ninVcocperatives irtS ^ * prospects for the Mon- 

eo ok. ru mh> Mmt iV_- ~ • *0*. me general -motors pram Hrapmv m-ram srt- thp.rpfnrp rvm- 


dragon group are therefore pro- 
mising. ' It . has managed to 


grow to Pta M8bn (24 par cut employing 6477 people. The Zastoora- This 

up on 1980) with «7,000 core of the group te tbe origreal requires new investment of 

depositors, one fifth of the 23-man. workshop, Ulgor, which pta loom ^ . 

Basque .population; ite: tav«- now employs 2,780. IHgor is Equaffly, the grog’s strategy 

ments in the group to Pta 36i|bn the Spaniel market .'leader in is- to ^aduailyfedime S ^ves^oenrhas ^ceased to 

(Pta 6.4bn in 4931); its capital washing machines, cohkers, dish- specific weight of Ulgor and S?’ ia!o«, 

and reserves to Pta 7.4bn; and . washere and fridges under the f&ther <^Srify into other 2L““ m the last three 

its number of brandie s gro w Fagor (tnademark. But the fields. Thus, Fagor Eledro- 

to 114 last year,; When it turned domestic appliance sector in ;techica f winch makes television 

in n. : net profit of Pta Uhm! ^xam 5ias tjeen'hirdlTO: by thetuners and Icw^-power semi- + ._ Mk * T ™ a+ |__ 

At one 'level, the key to receOT»n, -wirtii losses 3aA year conductors, give tnrtt last 
Mondragon's success lies in the of some Pta 12bn on Turnover of to. a new co-operative, Anria, SDint - oertacnlarly-the urge to 
carefully designed superstrue- neariy Pta 90 bn. wfakh makes numerical control 

' tine - of -the group- Central to Last year Ulgor last Pta 500m systems for machine -tools. 

this is obviously ' the bank, on a turnover of Pta 16:01m, The .control systems were . . ... • 

which as well as lendin g funds saved to a large extent by developed by Fagor in conjunc- JJJ 

at preferential rates to finance Pta 6.8bn in exports, mamly to tion with the Ikerian centre. 

existing cooperatives r and France and Algeria. It was <mly Ularco now has a complete rjj? JHTifl? Jarwaf 

taamefa-new ones, is the group's tho second loss in its history. range of equipment to offer in JJJJf S 

strategist, providing investment The company’s response was the machine tool sector, an area tha^eome of th^w was s3f- 

*' . inflicted because longpostponed 

decisions could no longer be 

deferred. 

Some dislocation has occurred 
as a result of efforts io consoli- 
date the sub-group structure — 
-there are now 10. accounting 
for 65 per cent of turnover- 
arid ' living standards have 
suffered, badly as the group has 
slashed labour costs by 3.6 per 
cent (against total sales) u> the 
past three years. But no jobs 
have been lest and many more 
might yet be created. • 

•. David Gardner 


years. 

Critics inside the group— 
they do exist — are concerned 
that the original co-operative 
spirit, particularly the urge to 
create new jobs from the 
group’s surplus, is being eroded 
and that the-Caja Lab oral itself 


• ? . 

ULARCO GROUP, 

MONDRAGON 




' ■ ■ ■ .! 

(Figures In Ptas *060)' 

1 

\ * 7 


. - 

^ ■ -71977 

1978 C 

: 197T * 

1986 .. 

1981 

Projected 

1982 

Sales 

r. 14^72 

18,641* 

22,192 

25,738 

. . 30,417 

35,325 

Investment 

• - A ' L570 

L527 

2406 

L«83 

901 

565 

Profits 

1*144 

- 851 

572 

-209 

-935 .. 

390 

Cash flow 

. 1.B59 

L8U‘ 

1*762. 

U22 

940 ■ 

2,446 






. Source: 

Ularco. 


Troubled state-owned concerns look abroad for new markets 

Private yards stay in the black 


SHIPPING 


THE GROWTH of fhe Basque 
Country has been intimately 
linked throughout .its history 
.with the port: of Bilbao. Sited 
at the - mouth of the River 
Nervian and- sank between 
steep, prot e ct iv e- hills. Bilbao 
is a natural harbour and it was 
from here that some of the 
great voyages, of the past were 
made by Basque sailors. It was 
from here too. that Spain’s sea- 
borne ' trade with northern 
Europe (mainly wool) was con- 
ducted- from the Middle Ages 
onwards. As early -as the 16th 
century a special court, the 
Consulado de Bilbao, was estab- 
lished to deal -with problems 
created by maritime trade. 

■ The real boost to maritime 
trade came with the British 
industrial revolution that saw . 
an upsurge in demand for iron 
ore from the province of 
Vizcaya and the .purchase . of 
British, coal for use' in Basque 
steel furnaces. This in turn -led 
to the growth of a shipbuilding 
industry along the barites of the 
Nenrion, using the Basque steel 
and engineering industries. - 
In the pest TOO' yea ts Bilbao 
has been the maln'oeutre for 
the shipping business in Spain, 
witiiBasqae '$fo*pping magnates 
owning from' between a Jfcard 
to half of total tonnage. -In 
1882 74 -of Spain’s S68 steam* 
a haps were Basque owned. By 
1918 there were 17 Basque com- 
panies among Spain's 32 largest 
shipping concerns and -BBbao- 
re^stered tonnage totaled 
312,009 tons in -98. vessels^ 
Nearly one (bird of this tot 
sage was accounted for by two 
groups — Axnar and Sota. (The 
owner. of theiatter was knitted _ 
for putting his fleet at the dis- 


position of B ritain during the 
first world war when Spain wap 
neutraL) • i 

. Today there are - 35 Basque 
Shipping companies awning 154 
vessels and employing some 
.6,500 crew; This represents SO 
per cent of aH SpanroTsh^ptog. 
the main:Basque companies be- 
ing Artola and Vnawtina. 

The nature of the. shipping 
business has changed enor- 
mously, A large riusuher of the 
present.' companies were either 
founded or espanded w&th tbe 
economic boom ' of the late 
1950s and.'toee 1960s, and were 
often, tempted into the owner- 
ship of oil tankers. As- a result 
the rise in oil prices and the 
decline - in International tanker 
demand has been keenly felt. 

Difficulties 


This has- been a factor in 
the demise of Xetasa, whose 
fleet has be«i sold off (only one 
tanker remains unsold) due to 
financial difficulties, and . with- 
Azhar, one of the farmer, ^eat 
name^ of BBhao sfeippang. • 

- Shto»wne» have frrflher been 
squeezed because the Govern- 
ment has abMged. them to -take 
over tonnage ordered by to> 
■ragnbuyezs. from Spanirii. diip- 
yards' whkfa’ has not been de- 
ffiveredl- Seeing surplus tonnage 
has riot always been easy be- 
<Muae.of -*epa?oWems- posed by 
tough demands from Spanish, 
crews who ham sought to pa*o- 
lectthefirjofcs. 

‘ One d the latest sales has 
been hy'Viaaiiia, gelling. off two 
SMjWr.dwt tanKers to Saudi 
interests. Instead of imwrring 

the COStrof matwtaltiTng the tWO 
-fgnkws, - Vfmtlna will HOW be 

aide to, -earn inpqme .from a 
management contract with the 

110W • uwufilSt p _ 

, Prior to the sate, Vfacaiaa had- 
a fleet of 1:14m dwt One of 


tbe largest in $pain, it had been 
built up only isince 1956. The 
company is majority owned by 
the two Basqtto banks Bilbao - 
.and Vizcaya with- 40 per-cent 
each. It Isis -been able to 
weather oat tHfficult ’times and 
substantial losses largely due to 
the backing of -its hank share- 
holders. 

Apart from , gearing its fleet 
to national. needs,. VIzcaina also 
sought to;provide a better ship- 
ping service to purely’ Basque 
industrial needs. Thus it 
formed a joint company, Navdera 
Quimica, with the Basque pri- 
vate shipbuilder, Ruiz de 
Velasco, to carry chemical pro- 
ducts. 

Vizcaina was also a pioneer in 
Spain, in establishing a company 
to carry special heavy cargoes 
of up to 500 tonnes capital goods 
from the engmeeriog industry 
and a. joint venture, Ibertrulk, to 
caivy steel products for the 
Basque steel industry. 

Where possible the; ship- 
owners have gone to Basque 
shipyards which range along the 
banks of the River Nervion, 
where there aTO both' state- 
owned yards of. toe Astflleros 
Espanoles group (AESA). and- 
private operations. 

Control 

Originally AESA 1 was only 50 
per cent owned by the state 
bedding company, INI, and an’ 
important, slice of toe capital 
was Basque, including a Banco 
de Bilbao stake. But the grow- 
ing financ ial ~ difficulties- of the 
yards have resulted in the past 
three years in -INI control. 

The lack of space along the 
banks of toe Nervion, coupled 
with the need to distribute work 
in other centres, like Cadiz and 
El Ferrol has meant that the 
three state yards— Sestao, 


Olaveaga and Asua — have built 
smaller., vessels: -The 
vessel Sesta can build is 
dwt tonnes while Olaveaga’s 
capacity is 35,000 dwt 

Under X recently announced 
restructuring plan the AESA 
yards will ' lose over the next 
three some' >800 of their 6,000 
strong workforce and will con 
central e on bulk carriers, grain 
carriers and specialised petro- 
leum and chemical ; carriers. 
These will all be within the 
range of 44,000 dwt tonnes. 

However, the bottom- has 
fallen out of the domestip mar- 
ket and a vigorous effort has to 
be made to capture foreign 
sales if the labour fOlcce is to 
be maintained. 

Shipbuilding costs in Spain 
have risen sharply, frightening 
off buyers even with soft financ- 
ing. Equally . Spanish prices 
are proving increasingly uncom- 
petitive. in export markets. Sr 
Ramon Bergarache, of Broken 
Lambert Bros, cites a. recent 
example of the lowest Spanish 
offer for a foreign . contract 
being $30m against ' $24m by 
Korean yards. . 

The six principal smaller 
private Bilbao yards remain 
more confident Still acting as 
family concerns they . have 
greater flexibility and have kept 
in the black, most frequently 
by shedding labour and cutting 
back on subcontracted work. 

Ruiz de Velasco, founded in 
1941, for instance, has been a 
pioneer In its field. It built in 
its Bilbao yard toe first Spanish 
cement carriers and the first 
chemical tankers. Employing 
470 people Ruiz de Velasco cur- 
rently has on Its order books 
two LPG carriers of 20,700 dwt 
tonnes and one special chemical 
products carrier, of 16,045 dwt. 

Robert Graham 



Altos Hornos de Vizcaya, S-A. 

ADDRESS Carmen ? - BaraccoCiO ‘ViZ-V’y V- SrS.D* 


TELEX: 32044 AH VC A 
32045 AH VC A 


SPAIN'S LEADING TINPLATE 
PRODUCER SINCE 1901 

OVER 300.000 TONNES ANNUAL PRODUCTION 

AHV-A WELL ESTABLISHED SOURCE. NOW AVAILABLE TO ALL EUROPEAN 
CONSUMERS (Standards accordma to Euroncrm) 



V- - 

- 


V V ■ 


'•.V'K 


• ( . ..J A 

. 1 






^ -*r 


_J* 

•'■S, . 

EXCLUSIVE SALES AGENTS ^ , 

UNITED KINGDOM WEST GERMANY FRANCE ,'VV; 

B1SHOPSGATE STEELS LIMITED COLITIS' HO CARO .SCO. TRANSAFER. S.A. 

53vGrosvenor Street. Flin«erslr. 31 58. -Avenue _M art 

LONDON WIX 9FH 4000 DUSSEl.DORF 1 75008 JARIS W - ' v 

Tlx. nir 23480 BISHOP Tlx. n 651^861 CEDE Tlx. n.A611150 TRAME- •: 

Phone n- <0l) 629-61 94 7 Phone n - ( 0211 ) 1:1 KJ ?i Phone ,n- 1 1 ( 225 46 lt-j * V X 

-20 no 07 ' a; ••• LV'V'A 


** i 

2r - r " 

• 

' V.-" 

1 . • 

■' • •' : . : . ' 


; * ‘ • 


L'NITED KINGDOM 


LONDON WIX 9FH 
Tlx.n^ 23480 BISHOP 
Phone n- (01 ) 629 61 94 7 


WEST GERMANY 


FRANCE 


Let us solve your problems 


Banco de Vizcaya 



business. 



Pasco deia Castellana, 1 li> -Madrid^ 
Td.4U 2062-Tflcx: 22571 -42382 



MBH 

f Paseo de la Castdl ana, 1 10 -Madrid-6 1 

1 Td. 411 20 62 -Telex: 45160 1 



London 

Branch 

58-60 Mooigate • 

London EC 2R6BN 

Tds. (01) 92001 21 

Tdex: 893461/2 

Paris ' 

1 Branch 

15, Avenue Matignon, 75008 -Paris I 

TeL (1)359 55 09 

Tflex:64 1423/5 % 1 

Amsterdam 

Bond 

Hercngradit, 479 

1001 JC Amsterdam 

TeL (020) 26 30 33 

Tfiex: 13582 16288 

New Yak 
Brandi 

400; Park Avenue, N.Y, 10022 

TeL (212) 826 -1540 

Tflex: 66199 

San 

Francisco 

Agency 

650 California Street 

San Francisco. California 94108 

Tel. (415) 392 -3530 

Tdex: 67534 

Miami 

Agency 

One Biscay ne Tower, 38 th. Floor 

2 South Biscayne Boulevard 

Miami, Florida, 33131 

Tel. 305-358-9882 

Telex: 441540 

1 Nassau 
i Branch 

C.O. Roywest Banking Corp. Ltd. 1 

PJ0. Box. 4889 -BAHAMAS. 1 

. Bahrain 

OJBAJ. 

Kanoo Tower (Phase 111) 

4 fit Floor -Tigard Rd. 

Manama - State of Bahrain 

Tds. 25 32 61-25 33 40 

TSex: 9060 

mummm 


^ mi 

Aifentma 

Avda. Comentes, 31 1 

Oficina,10I 

Buenos Aims, 1043 

Tds.(541) 361 20 65-361 21 15 

Tflex: 17739 

Banal 

RuadoCaxmo,ll 
• Andar 19 

Rfode Janeiro RJ 

Tds. 242 70 26 -242 86 06 

Tflex: 2132591 

Ode 

Paseo de Ahumada,254 - 3® 

Oficina, 31.. Santiago de Chfle 

TH. 72 6641 

THex 340946 BAVIZ-CK 

M&rico 

Avda. Juirez,4 

Mexico, 1D.F. 

Td. 585.00 30 

Tflex: 1777460 

Venezuela 

Avda. Francisco Miranda 

Edifkio Torre Europe 

OGdnas 7 y 8. Caracas 

Tels. 33 43 53 -33 25 08 
.Tflex: 23532 

. Germany 

Friedensuasse.il 

6000 Frankfurt Main 1 

Td. 23 32 91 

Tflex: 413215 

Italy 

Via Alberico AlbriccL 9 

10. Iqterno D. Scala A 

Milin -20122. 

Tds. 87 55 25-867661 

Japan 

Yurakucho Denld Bldg.-, 652 

7-1. 1 Chome - Yurakucho 

Ot^oda-ku 

Tokyo 100 

Td.(03) 2870791 

Tflex: J 29472 

• C.onnau^rt Center 2.114 

Hong-Kong Central 

Hodg-Kong Td. 216 349 

TSex: 62898 

i 


Banco de V izcaya 


Gian Via, J - B2bao -Spain. T£L: (94)416 64 00. Tdex: 32040 







16 



At BILBAO SAVINGS BANK, w6 are ready. 

Ready to face any'intemational requirement 
. From the traditional correspondent .relationship for 
commercial trading, right through to the most complex ■ 
financial transaction. Dealing Room, Syndications 
and Special Operations Area, Mergers and Acquisitions 
Division, Secondary Market Eurobond Dealing, ' 
Project Financing. ' : 

■People know why we are number one - 
regional Institution and the leading Spanish ' 
International Savings Bank. Because we are ready. 

We have been prepared above aU tobe leaders J 
in hospitality, to welcome you at pur offices whenever * 
you care to come. 

Call us at 4164699 - 4150583 in Bilbao . ■ '*■ 
where, you will find us ready. To service you. To 
reciprocate you. 

WE ARE 
READS 


A 


CflJfl DE flHORRO / muniCIPfll DE BILBAO 
BILBAO /AVIAG/ BAAK 


WE CAN HELP YOU 
CARRY OUT YOUR 
INDUSTRIAL PROJECT 
IN THE BASQUE COUNTRY 


If you are interested in investing in : the 
formation of new industries or in the expanaon of 
existing ones, the Industrial Development Board, 
which was formed under the auspices of the 
Autonomous Basque Government, 
offers you a major package of financial aids and 
advice and help with economic and technical management 


To enable you to fulfil your industrial plans in a 
convenient and efficient manner. 


We invite you to learn all about this advantageous offer, 
which emanates from the Basque Country, 
a region of the Spanish State which boasts a highly 
developed industrial - infrastructure 
and self-sufficiency 0 in skilled personnel,, 
supplies and services, 

and enjoyes a high level of competitiveness. 

Do not hesitate to get in touch with us. 


Basque industrial development board 

rr 


Iicenriado Poza, 15 
BILBAO-11 SPAIN 


Tel.: 

International + 34-4-444 68 50 
Telex: 31047 SPRM 


A L AVA 


THE 


FUTURE OF 
BASQUE COUNTRY 


A 

/A lava, future of the Bas- 
que Couxuty. the province with 
highest index of growth of in- 
dustrial production in the last 
ten years, has been at the same 
time the one wirh highest in- 
crease of population in the Sta- 
te of Spain in the last rwemy 
yean. 

In Vuona. its main City and 
the seat of the Basque Govern- 
ment, converge ns historical 


background and the intelligent 
nodem 


growth reached as a m 
and pushing city. 

In AJava, its very important 
agriculture, cereals seed-pota- 
toes. white-beets, and the famous 
wines of Rioja.", Iiuein harmony 
with today's industry, and 
has a great 

export tradition. ■ . 


.Mata's Saving Bank, the first 
banking company of the pro- 
vince, has fixed its top-priority 
aims at contributing to the in- 
dustrial growth of the region. 

To comply with this, ir offers 
in on-the-spot range of avail- 
able banking services: Loans, 
Discount of Acceptances, Inter- 
national Service Department. 
Current Accounts, Payment of 
Wages 5ervice, and a speciali- 
zed team in its Department for 
Industry. 



Arabaks 


’ lijiuiicud limes Luiii$day June'10 1982 • 

THE BASQUE COUNTRY it 


f --- - 


’ Bank boards retain a tight grip on the economy 


-• — • ^ t ^ ■ - : ■■ : \r 7 r* r., <■ • A:. . t 



s two in 




'V 


BANKING 


created afonnidable oligarchy commercial bank. .Berth banks 1 r v .. - . , •. “ 

whereby .-'As, few as - 30" large established, separate industrial ■.ooneiTe - en aag nc 1 ! "yue''iui&oirBT 

famHi« y '. nn d domi- arms when t§£ banking Laws BASQUE DEPOSJB-.^- SHARE. OF THE MARKET 

, sated every -key aspect of the were changed in 1962, eneparag-. IflSn iflfll - 

BASQUE reputotwq ftr Basque ' edendm^HEran the ing specialisat i on. Given the .. . ■ A-t- ‘Market 

thrift and hard work -is no financial institutions and insur- traditional trading relationships . * - 

better illustrated than, in the anew companies through to the between the Basque Country . -: Wi}shB share % _ Ptas bn&Hpre% . % 

[■ development i>f banking.- Two. railway, power 1 generation ami and northern Europe, . both Private banks ^ -535 . ,50.49 . . 62Q. 49.08 7-. . 15,9 2 

of Spain s “ big «CTen TI emu- supply, steel production, ship- banks have been among tiie first,. Sayings banks - 473 * . 44.65T A - '579 4£87 ’’ 7 122^2 

mercial banks, which now con-, building and shipping. Testi- to have an international outlook." ^ j — - .- . .. gr' - A". ~ 

trol two-thirds of Spanish com- mony of their enormous In the past five years both CraDt co-operatives 51,.. d.85^. • ~€3 •; -..;S.Q5 >724.09 

mercial tanking, are of Basque.. accumulated wealth is the' have accelerated a process- of TOTAL V r .1JD 59^ -100 10Qr " 1927 


■ While now regarding them- of '-the ^"Neguri aristocracy ” those sectors worst affected, by ■' .,1 I 1 :-; - 


selves -as national banks,, both are rentitiiscent of the Victorian the recession. In this respect . 

Banco de Bilbao and Banco de mansions' built by north of Vizcaya bas gone much' further Aquirm, -is also Guiuuzctemo further major change' fa&owed 


than Bilbao and claims to have ^airman, ■ - = ' democrattc VeiectaonE to - the 

no nujpr indn^tri^ ^ts Jeft. BinBvto" '' control, tie in. lB7a - Sri® 


Balanced 


to establish amoxebalanced 

rtf am cm regional commercial bank now - • 


Vizcaya insist, on their.regioual England industrial ma gnates , 
rooting in the Basque- Country. ' . This control probably reached 
Both retain their headquarters its .-zenith in the years before 

in Bilbao. Only, 1 Banco de the civil war. Since then it has 

Santandar of the other' big been diluted by the new wealth 

■seven retains its seat: outside created in the boom of the late 

As well as the two major been seriously affected by the spread of credits, so that their even-firmer Basqiie identity/ * 

nataanal banks there are the recession which has hit the exposure in the Basque Country '' This ; in turn has* put at' the 

savings- banks or cajas de Basque economy in the. past five itself is not disproportionate for ■ ulr Basque Go veram^^s disposal a 

Ah wto. These non-profit-mak- years. Nevertheless -the ^ards a national hank. The same has larlSte bliSSebf iSuSL 

ing institutes have bem ex- of Banco de Bilbao and Banco applied to ^the deppsit _base. Gu^nzcoano, .. based_ ‘ San . the Basque cajas are^hiSly 
tremely active , in promoting de Vizcaya remain a who s who Figures released by Bilbao Sebastian. liquid. The^e funds, -riieaply 

Basque economic devetopment of Basque business even though reveal that in 1980 the Basque ' There are no published figures obtained, can also be leatat 

and have demonstrated a re- the two banks have successfully country accounted for only II for the share each commercial nslafivelv cheao rates At ihn 

markable abiUty to attract de- brou^t in younger management per cent of total deposits com- hank .has of -business in the l^fsiation- b^ hPr. 

posits. .The cajas’ share of '/and new. blood. pared to 17 per cent in Madrid. Basque Country. . However, un- mU-ted thp.pa^s to consider^ 

deposits in the region is higher The oldest of the large banks However, 41 per cent of the official estimates' indicate that nai-t of fftelr^hlieatory or statPL 

than anywhere else in Spain, is Banco de Bilbao, which was shwes remain in Basque hands. Bilba? has about 22 per cent , directed investment credits for 

and the Basque Government founded in 1857 and this month Vlczaya and Bilbao are not followed by .Vizcaya with 19 per rH.joip sector actlvik« 

regards them' as a vital instru- celebrates its 125th anniversary, the only Basque banks. It as nn- cent ■ and Banco • Hispano- ^ the Ba sque country - 

meat to finance new develop- From .a tiny ‘Operation founded portant to mention Banco Americano Twirich traditionally - 

by 10 shareholders it has be- Gmpuzcoano with depomts of has had strong Basque nartim- "More ainas gamerro m-th g 

come Spain’s fourth largest bank Ptas 77b n. This San Sebastian- pation an its capital and board) 

with assets of Pta. 14fl3bn based commercrai bank retains with 16 pm cent The other big ' 

C£6JJ45bn>, capital of Pta 56bn its separate -and regional national, banks have relativedy 

and an industrial laim with identity but is effectively part of small riiares. - .Banesto for in- '-rP of ™e. HasqueTjovefti- 
assets of Pta 118b n. • the Banesto group— the -coun- stance has little more than 2 per operapqng, ;in .1580, 

Banco de Vizcaya was founded try’s largest. Banesto has 'a cent, it is’ thought. Through ^ activity in. the ;,public 

in 1901 and has subsequently controlling stake and the 

become Spain's fifth largest Banesto chairman, Sr Jose Maria 


meat. 

Basque banks have grown up 
in tandem with industry: they 
have traditionally been finan- 
ciers and promoters of — as wall 
as shareholders in— all aspects 
of Basque industrial develop- 
ment 

This dose inter-relationship 


SdiuiW “Ed VitoriT ti 3 ^ **T * ** f 04 ® 

hovSv^rises.to almost- 14 per ^Jj*** ** 11 to nearly 

i per cent 




get 

to ease the strain 


cent. Central. Spain’s second 
biggest bank, has mound 6 per cajas have latterly ^seen 

c^LSignifi^nti? STbig baSks «their resources gnmng fester 
have shied away from a major 
effort in the- Basque Country 


since the mld-70s. An exception 
has been Banco de Santander 
-which is now believed to hold 
around 8 per cent of the market. 

Private banks as. a whole 
play a lesser role in the Basque 
Country, than they do anywhere 
else fn Spain. They account Tor. Anv»l«'n*5mi‘ • 
around 66 per cent of the total *' . : A Pr lli:auui1 7 


than have -the private banks. 
This would seem to indicate that 
in the Basque Country, at least 
during a recession, there -is a 
greater propensity to save. Last 
year the private banks saw their 
deposits ,grow 16 per emit, while 
those of the cajas jumped almost 
23 per cent. : • . ; • . . 




MEDIUM 

INDUSTRIES 


•Hu 118 ? review of its products on- the Spaxa&t banking system deposits Backed by their soHd reputa- 


f 35 ^ 5 t 0 * aflded .-3 alue ’ technt ^ and the Temainder Is shared; by tion ' the; 'Basque. ' cajas have 

-tite cajas- In the case of the , begun to. look /eagerly abroad, 
prise, Wien in 1961 there. was range. For the -moment it. Basque Coiintty the cajas*: share convinced that, if permitted to 
a percenred need to develop intends to maintain, and per- of deposits rises to almost 46 operate, they cahmop up fimds 

■? fhrther.5 per WSS eiSigS.^m- 


THE USUAL image Basque —• ^ ^ ®t ^ ^ .nKhSpSd lS 

industry is distorted by, the selves profitable, bejjevmg that cooperatives:' . America.' 

concentration of , heavy indus- The explanation : for this An aj)pHcation by the ;Caja 



Though one-third of the Basque '• »*«“**» _ 

labour force is concentrated in' spec 11 ^™ Was extended further 


feel there is more, local control Guipuzcoa to open in Bayonne 
u « in 1965 with the aemiisition of A further avenue .it is than in a bank.dmtrolled by ; were made . eayiier, this year’ to 

factories with over l 5D0 workers, “ explonng.is the marketing of interests outside ..the — *- — — 


over S3 cent' of all Basque in- qa m its own licences abroad. It is 

dusteiai concerns employ less “xL™’ already involved in setting up 

than 50. . - a Venezuela, and is at 

These small concerns provide ^i®i ers * e talks stage with, concerns in 


about 15 pear cent of ail jobs, JS™ Canada and Mexico. 


» attrition i^ 


companies a day were going 
into receivership in Vizcaya 
during the first half of last year. 

In between the two groups 
are the medium-sized concerns 
which employ just over half of 
all labour and which have given 


technological expertise had fur- 
ther developed— over the years 
it had consistently spent an 
average 7-8. per cent of its re- 
sources on R and D — the next 
stage was to buy out its 


region, the Bank of Spain. The requests 
There are two cajas in qach of .: were refiised. : The Bank, of 
the three provinces controlled Spain is. unwilling. to.. open, this 
by the Basque Government. avenue , and stf '.let the , cajas 
These six Government-con- , ‘^poach” on the ground-, of - the 
. trolled cajas however are private banks*-,-: ; . 

The Basque Gtwemment^has federated with the Navarre cajas : -Soggestions that the Basque 

"date are 

.T j. I , . __ . . ^ ■“»'«' V vuivu LU • <— r s — tt-*: — » , — -- Butlhey 

devetopmrat and restructuring, Vitoria. They are enormously .are trying to cCKordinate .their 
to channel soft credits and confident of their capacity to activities, more- closely and de- 
monitor their uses. “Reciprocal compete with the banks. Tradi- their .optimum size. For 
Guarantee Societies have been tionally their role bas been one instance they -are considering 
set iro bv emnloverK Mvanisa- of obtarnirig savings which are ' a poEty erf tdllectTve m vestment 


group’s own technology from teaerateu with the Navarre cajas = anggesuons mat tne iias 

w the start. When the group’s and act as a joint federation with ^Jas merge to consolidate 

technological expertise had fur- 5^^ ate formdusttial a newly created central office in -at present discounted. Butt 


in EAHSA in 1973. 

. The three companies 
free to begin- 


set up by employers' organ isa 
tions to. si 
longer-term 


licensors, in AISE in 1971 and largely in estate 4 large projects. They have 


“W** directed investments — the so also decided to create a money 


were ck 8 * caUed privileged circuits of the-^ 0 ^ .company, , permitletl 

S Spanish bantogsystem-Sd to unte ^recent fenk_ of Spain 


the Basque economy unsus- 
pected resilience during the last 

seven yearn. However, the now free to begin, serious uHods to ils membersVAAood 

structure of these enterprises development of their own tech- deal of criticism is directed by S?' inakes smse if thev ire sub- 

inner c train nolocv and to search for pxrvrrt email. medium-sized- s ^ a _^ “irMt credits.- The pro-. . W®- ,T® s ‘^ 

, Portion of state directed invest- ftantial leaders of funds in the 


has come under growing strain, nology and to search for export small- to 

f und amentally through: markets. In this respect, from employers ' at the hanks ( for 


uaiuuiEUutuj' uuousu. . nuuviujters at me -oamts . lur L,.. ■ inter-bank market.. • ’ 

the sharp fall in demand in an export base of bafely X per ..their conservatism in analysing * The cajas have also token 

ma-rfcM cent in'1974. the Arteche ptoiw rirfre rtow stands at 55 per cent of . * n ® c ? jas . 


the traditional domestic market cent in!1974, the Arteche group rista, favouring short-term 


per 


me usuiuuuu uuiuvoui. u«tt«vw. — — “ a*»r uana, invutuu auvxL-Lcxm __ nn .. . shares in a— J4asmlP eTPllll 

coupled with increased compel emei am ttan_eji«rt»r of . tome ^d-tendii«_ to look l™ 7™ K guerintee fuhd^; MeamchHe 


Basque credit 


long term housing finance in 


tioa^nmora demindiag forelgD Jg . vgm to l£ 

much higher financial, energy Europe and - Latin Amenta, of a given project and the track 4e^2t ^ 13 ^ to pensfons.^d^uch SSJ a? 

and labour coste: • Its capital base and labour record of the company te " l or i f e r “ r - information on small and 

more difficult a cce« to credit force were regularly ; built up : proposing it. . - since 1 iP^tn ^fhpra '' medium companies. 

- - ’ ^ David 'Gardner ^SSofth? 61 acti " ” ' ' 


along with a lessening ability to 
generate their own resources. 


Vacuum 


A typical example would be, 
say. a family-owned machine 


its total capital and reserves 
now stand at Pta 608m (EAHSA 
accounts for Pta 550m of this) 
and it . currently employe 525 
people. It also. relied to a high 
degree on self-financing, keep- 
ing - indebtedness 1 within 1 


cajas in Spain. A 


Robert Graham 


ma “®* w e bounds, so that it 
was not badly affected by the 

J5J reh n ^ 2s riBe in inteStt rateTof 't£ pSt 

witn occasional Excursions thnui rc p 

abroad, particularly to nearby . * 9srs ' . ■ 

France. Now, its overheads. B 

would have more thai doubled, ' r ®»‘uve 
its access to credit would very Yet when the squeeze cahie. 
likely depend on the mortgaging- it still made small losses— of 
of a family property and. faced Pta 5Sm in 1979 and Pta 25m 
with the need to aril ever in 1980, though showing ' a 
higher portions of its wares positive cash-flow in both years, 
abroad, it has neithm; the The reasons were not hard to 
resources not the expertise to find/ Though ' a grbup. the three 
follow the rhythm of techno- main units were functioning as 
logical change and the demands separate companies, duplicating 
foreign markets. But In jobs and doubling up on market- 
federation with similar com- ing eff orts and even research. 


panies it might A decision was taken, effective 

of the solutions from the be ginning - of igsi, to 


This is one 

being canvassed by Basque set up a centralised commercial 

SSSSr* 2* fill 6 for tiie group, Arteche 

ployers to fill the structural Comercial SA (ARTCOl. 
vacuum " in thear companies. v/ith a staff Vn^? 
ADEGUI the employers' organi- se ntatives ' and delegate 
sation m Jhe V™™?, * throughout Spain and riwoadL 
Guipuzcoa, iriiich has some U00 ARTCO sells for the whole 
medium-sized enterprises, group, charging a commission 


argues that “some of the risks 
should be spread, but without 
collectivising.” The object 
would be to generate more 
resources and achieve significant 
economies of scale, particularly 
in the key areas of R&D and 
marketing. Sr Jesus Alberdi, 
secretary-general of ADEGUI 


to coyer its costs. On the back 
of this, a joint group board was 
set up, to co-ordinate planning, 
research, finances, supplies and' 
quality control. Another 
measure was to tighten op on 
accounting practices, where, for 
example, there bad previously 
been a tendency to lump work- . 


• “ « I *■» VMM J t,W IU1UU WI/iA 

also points out that such loose in-progress .in with year-end 
groupings would offer the possi- turnover, .the cumulative' effect 



bility of relocating otherwise 
redundant workers within the 


grjmP* 

The Arteche group of com- 
panies, makers of electricity 
generation, transmission and 
distribution equipment : at 
Munguia, 14km . from Bilbao, 
offer a useful example of some 
of these, lessons-/ and others 
besides. ' 1 

The first company In the 


of which doubtless made its 
mark -in the 1979-80 results, 
coinciding with the introduc- 
tion of the change. 

The results in 1981 were 
encouraging. Total sales ros£ 
from Ptal.45bn to PtaJJFTbn, 
turning in a profit of Pta 26m, 
with a positive cash flow of 
Pta 154m. The immediat e- cost 
has been the shedding of 60 
jobs, all, the group says, through 


group, ■ Electrotechmca Arteche voluntary • redundancies. ' 
Hermanos SA (EAHSA). was- The group expects, turnover 
founded as a family firm in this year to rise to Pta.2J.bn. 
1946, making. medium and high Gearing up towards EEC, entry, 
voltage transformers under n u currently carrying otit a 


“BANCOGUI” 


For your operations with the 
Basque Country, you need an 'appro- 
priate vehicle: 

Banco Guipuzcoano. / 

One of the quickest and most 
complete mediums to understand, 
contact and operate within one of the 
most industrialised areas in Spain. 

BANCOGUI covers up to the last 
corner of the Autonomous Basque 


Community, with 62 branches and . 
agencies distributed over an -area 
roughly equivalent to one third of 
Wales with nearly half its population. 

We have grdwii up :in the Basque- 
Country. .We know its problems- and 
strengths. And we put all Our experi- 
ence to your service. 

Contact thoroughly with the Bas- 
que Country via B ANCOGUL 


Head office. 


, : SAN SEBASTIAN , /..- 

' Avda. de la Libertad, 21 
Telf. (43)42 93 €0 - 42 28 87 - 42 5 1 20 : 

Telex 36369 - 36368 (INTERNATIONAL-DIVISION) 
- SWIFT ADDRESS: BGUL ES. 22 


Area head offices (where all foreign operations 
of siintuinding branches are handled). 

BILBAO 

ZARAGOZA 

logrono 

EtGOIBARli • 

Telex: 32760 

Telex: 58157 

Telex: 37001 

Telex: 36490 

VITORIA . . 

j BARCELONA 

IRUN : 

■ TOLOSA i ' 

TeJex: 35546 

Telex: 54755 

Telex: 36482 

. Telex;. 36425'. 

PAMPLONA 

. MADRID 

EIBAR 

. . .. . .. - , 

Telex: 3775S 

.. Tslmri 27558 

Telex: 36350 



3 


Banco Guipuzcoano 




•Si 




J-.W- -- 

J ■■ 


-. ., -X 

lln.-.V- 1 




Rec«’ 

' r\ i 




E ■- .• ‘ 

. r. .. . 


} 

bic 

thi 



.-fl i" . . 

.. 


i' li-l : 7 

' r - u .t . ^ 

.C \ r- 


x’s,-: 







I:: L - 


iS 


§2 



Financial Times Thursday June 1G : 1982' 


17 



. ■.-"’"Mv 




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'•7jr'- = S 

-?» 

r", r r ^ 

' ' ■’■ Iris 


~ -T'l> r.‘, 

!* ",y * 

■■■iLji 


piuatinn 


r? ti hcrt GrA 



• ' 





THE BASQUE COUNTRY V 


GDP drops 14.5 per cent in four years 





the worst is over 


ECONOMY 


THE BASQUE economy, which' 
alo n g with the Catalan economy 
has traditionally been the- most 
advanced in Spain, is just begin- 
ning to emerge from what 
arguably has been the worst 
crisis in Its histoiy. : . 

The depth of the recession in 
the Basque Country is attribut- 
able to Uie structural imbalance 
of an economy heavily weighted 
towards steelmaking, ' capital 
goods production and shipbuild- 
ing on the one hand, and the 
plethora of companies too small 
to be viable (some 8£00 Basque 
concerns employ less than 20 
workers each) at the other 
extreme. . 

' The more solid middle area 
of medium-sized - industries,: 
accounting for around half of 
total industrial output, has 
been more resilient, though it 
too has had to take its share 
of the more conventional knocks 
of recession, particularly in the 
electronics, - . electrodomestic, 
intermediate capital goads and 
light engineering sectors. 

According to recent Banco de 
Bilbao figures, the Basque con- 
tribution to Spain's GDP fell 
from 9.34.: per cent in 1973 to 
7.85 per cent in. 1979. Basque 
GDP itself has dropped 145 per 
cent in the past four years. 
Including 2 per cent last year 
against - Spanish growth of 
around 1 per cent. 

Receiver 

Long a net receiver of 
immigrant labour, the Basque 
Country is now seeing a small 
outflow of population. Unem- 
ployment, the reason behind 
this, stood officially at 1&9 per 
cent at the end of 1981, against 
14.6 per cent for the whole of 
Spain; one unofficial study puts 
the number of real jobless at 
22.9 per cent - 

Be that as it may, it Is offi- 
cially acknowledged that 110,000 
jobs have gone in the last five, 
years; the Banco ' de Bilbao 
calculates that 35 per cent- of 
tile jobs created in the 1960-73 
boom have disappeared. 

1980 figures show electricity 
consumption ■ in the Basque 
Country to have dropped 3J2 

£ er cent, against an overall rise 
t Spain of 4.1 per cent; steel 
consumption to have dropped 5 * 
per centj (up &3 iper . cent hi 
Spain) ; and cemen t consumption 
to have plummeted 18 per cent, 
against a 5 per cent drop 
throughout Spain. 

Nevertheless, both the Basque 
Government and business 
reckon that the bottewn of *e 


trough has been reached; 1982 
will, be “the year , of 
inflection ’* for the - Basque 
economy, according to Sr 
r Pedro Luis Uriarte, the autono* 
. mods Government's economy 
minister. The Government 
itself,' ' - which now enjoys 
considerable intervention 
powers, foresees for itself ' a 
key role in relaunching 'the 
economy. 

•.Of its Pia 67bn budget -for 
1982, Pta 235bn is -earmarked 
for public investment 1 — propor- 
tionally more than three times 
the amount before fiscal auto- 
nomy was achieved last year. 

- Some Pta 5.3bn'of tins will this 
year go on roads and motorways 
as part of a major plan to 
develop an integrated road 
system. The renovated system 
will increase 1 the ' Basque 
Country’s attraction as . a trad- 
ing crossroads, providing better 
communications - for easting 
industry ' and new industrial 
sites and above all by linking 
up with ihe development of 
Bilbao’s port, one -of the 
region's few natural resources. 

. Hans to develop a “ super- 
port ” on the exterior of the 
existing docks still await deci- 
sions and finance of an esti- 
mated Pta 70bn to Pta 100b n 
from Madrid; in. the meantime, 
work is going ahead oh the 
Termanel coal and bulk -cargo 
depot Inside one of the two 
outer breakwaters already built; 
ait a cost of Pta 7bn borne by a 
consortium led by Petronor, the 
refining concent; . 

• Petronor, 34 per . cent owned 
by Pemex, the Mexican State 
oil company, is also going ahead 
-with a Pta 40bri new petro- 
chemical plant. Other substan- 
tial' investments include a 
planned total of Bta 60b a to 
develop the new gas finds — 
estimated at some 10m tpe — 
off the coast from Bermeo. 

'More in the mainstream of 
Basque industry, neatiy Pta 40bn 
in new funds is being' poured 
into' the troubled, integrated 
steel- producer. AHV, as part of 
a -national restructuring plan, 
while, for' example, the 'Mon- 
dragon .group of co-operatives 
plan Pta 52bn investment in the 
coating five years. - 
"■ The autonomous Government 
is directing its major effort at 
medium-sized industries, aiming 
to promote more cbst-efficlent 
integration to subsidise new 
jobs (at up to $3,750 each) and 
industries. It has set up a 
separate entity, with funds of 
Pta 2bn andGovernment under- 
written lines of credit where 
necessary, to coordinate this 
process of restructuring and 


expansion. 

Significantly whereas SO per 
cent of its industry funds last 
year went towards refloating 

- co m p ani es in difficulties and 
only 20 per cent to new invest- 
ments, the planned proportions 
for this year are 40 and 60 per 
cent respectively. It is also 
backing ambitious energy-sav- 

- mg and. anti-pollution projects. 

Control 

A significant part of the Gov- 
. ermnent's medium-term effort is 
going into subsidising R & D In 
the private sector and financing 
applied research centres. It has 
set aside Pta 633m for the latter 
jhis year and is complaining 
bitterly that Madrid has broken 
both the spirit and the letter of 
the autonomy statute by not 
handing over control of re- 
search. 

The statute is quite clear on 
the issue placing research under 
tiie “exclusive" jurisdiction of 
'the Basque Government. Sr 
Pedro Etxenike, the Basque edu- 
cation minister, points out that 
. in 1980,- of the Pta 40bn spent 
by the central government on 
.research, the Basque Country 
got precisely Pta 111m. 

In terms of the 6-24 per cent 
portion of the Spanish budget 
that Basque taxes axe obliged 
to cover lor those functions that 
remain centralised, on Madrid, 
the autonomous Government 
should, Sr Etxenike says, have 
been entitled to Pta 2.6bn had 
jurisdiction been devolved, as 
it should have been. 

Considerable effort is being 
deployed to improve, export per- 
formance. The Government has 
set aside Pta 1.4bn for medium- 
sized firms to develop their 
marketing potential. The Bilbao 
Chamber of Commerce, copying 
an idea from Manchester’s 
chamber of oommerce, has set 
up a sub-contracting exchange 
to enable companies jointly to 
compete for complete orders 
otherwise beyond their in- 
dividual' product range. 

. In the private sector, a trade 
promotion association called 
BaskEsport has grouped the 
most dynamic sectors of the 
Basque , economy. Apart from 
trade,. it aims' to promote turn- 
key deals; joint ventures both 
at home arid abroad and export, 
credit. 

The Basque Government 
plans- to develop a range of 
incentives to attract foreign 
investors, looking particularly . 
towards companies which 
would provide technological 
innovation, are export-oriented 
and would complement and 
extend the range of Basque 
industry. At the same- time, it 


is worried that'- ’it . may come 
badly out of Spain’s EEC nego- 
tiations, particularly if, as 
expected, Spain has to make 
concessions to protect its agri- 
cultural base. * Vitoria has. set 
up a special commission to 
monitor the negotiations, which 
will also act as a lobby, 'for 
Basque interests. ... ■ 

The subject <ft . violence in- 
evitably comes into any con- 
sideration ..-of the Basque 
economy. • There is no evidence 
that it is a major influence on 
the economy^ when Basques 
haven’t invested, nor have 
Spaniards or Catalans, and for 
straightforward economic 
reasons. . 

ETA's so-called “revolution- 
ary tax '’—which extorts per- 
haps some Pta. 600m from 
-f again perhaps) about" a 

thousand, mainly middle-range 
industrialists and professional 
people — is seen primarily as a 
cause of deroORtiosatiozL It is 
Hkely that it ' inhibits the 
possible expansion plans of 

some family-owned companies 
where capital is highly- person- 
alised. Otherwise the u tax “ is 
a political rather than an 
economic issue- 

Substantial 

■A foreign company did, how- 
ever, decide to postpone a 
planned investment in the 

Basque Country following last 
month’s murder - of Sr Angel 
Pascual, the chief engineer at 
Lemoniz, according to a senior 
Basque minister. This is not to 
be confused with the UB. glass 
producer Guardian Industries’ 
decision to withdraw from a deal 
with 'Vidrieras de . Llodio 
(VUlosa) where It would have 
bought an approximately two- 
thirds stake in the Basque com- 
pany for $40m. Guardian with- 
drew after reassessing the com- 
pany and deciding the price 
was too high. 

Guardian’s intention to com- 
mit a substantial sum of- money 
to the region, was watched with 
great interest at the time; Bor 
there is near consensus among 
Basque businessmen that their 
economy needs to be “inter- 
nationalised V to ensure its long-, 
term survival. 

In terms of native resources, 
the paths forward most com- 
monly pointed- out -lie - in the ' 
marriage of the two traditions 
of electronics .and mechanical 
engineering, and possibly, in 
converting Basque shipyards for 
defence purposes, bringing to- 
gether’ Basque experience' as 
shipbuilders and armourers. 

David Gardner 


Autonomous Government spends half its budget on education and cnltnre 





bid to recover 
their 



CULTURE 


IN THE Basque language, 
euskera, there is no word for 
“a Basque,” or tine Basque 
Country. A Basque in euskera 
is an euskaldun — someone .who 
speaks Basque; while the 
Basque Country, the country, 
which exists - beyond circum- 
stantial political arian^nents, 
Is classically Euskal Herria — the 
people who speak Basque. 

This curious symbiosis of' a 
people witii its language is very 
striking to foreigners and 
Spaniards, the more . so given 
the gradual retreat of the 
Basque native tongue . over, the 
past two centuries.' But it cer- 
tainly helps explain why exactly 
half the Pta 67bn budget of the 
autonomous Basque Government 
of Vitoria is spent on education 
and culture and why nation- 
alists of alt. stripe^-thou^b 
frequently from opposing posi- 
tions— are so determined to 
recovier their langtzage and their 
critical Writage, which Franco 
tried to wipe. -off the' _ Iberian 
map. 

Primitive . 

The scorched • earth . policy 
practised by Franco on the 
Basques was only the last and 
most culturally inhftHtnig factw: . 
in a . chain which begins. with, 
the Basques' themselves, . The 
Basque industrial bourgeoisie 
of the. early. 19th century . 

regarded euskera as a rustic and 

primitive tqngue and relegated 
it back to the arable. /valley? 
and mountain pastures where 
they had carried cut their, no 
doubt primitivevCajHtai accumu- : 
lation. , 

As the century wore on, they 
looked more to Paris,; London 1 
and Madrid, while the three 
Carlist Wars of : the ! century 
forced tens of thousands of 
Basque . .speakers - into- exile, 
p rimari ly is. the Americas.. • 

This was in sharp 'contrast : 
'to Catalonia, a long-established ' 


mercantile, rather than agrarian 
society, with. & rich literary/ 
tradition (thriBapque tradition 
is predominantly, oral), where 
Catalan has. always been the 
language of the ^bourgeoisie^ - 

With the second, wave of in- 
. dustrialisation at the begi n ni n g 
of the century, ; arid with the 
' boom of the 60s and ‘early 70s, 
the Basque Country became a 
magnet for emigrant -workers 
from the" depressed southern 
countryside. Basque': speakers 
became a minority,..and under 
Franco, a persecuted minority. 

This situation has begun to 
turn round in the last 15 years, 
which has seen a flowering of 
national consciousness,, largely 
as a result of the Basque 
struggle against' Franqo (indeed 
a few hundred Basques took the 
opportunity to learn Basque in 
gaol). The spread rof* the lan- 
guage over 'the past 10 years 
has been remarkable; about a. 
quarter of (he population speak 
Basque a$ a firet- language arid 
with new Basque- speakers 
(euskaldanberris, literally), this 
figure rises 'to a third. 

However, less than a-tsnlsh of 
these, some 70,000, can write 

Basque- The Basque Government . 

has therefore distributed its. 
efforts . . between promoting 
euskera t in tire schools - and 
right-classes for the " re- 
euakakhnnsatiou ” of adults. 

■ The education . department 

looks after the schools /with a 
budget of Pta SO.Tbn, while the 
culture department, with a 
budget 'of. Pta 2.8brij handles 
adult education. 

. In the state system* children 

witii 'Basqyj&ad a/ fost language 
are fiaufeStt'emtarafiy in' ^uskera 
and study CastiXBan for seven 
impirt - a / week; with native 
-Chilian gpeakgTSj Ihe reverse 
is the case: they study Basque 
for seven hoars & week. 

..Sr Pedro Etxenike, the 
education minister* does not 
present 'fibiri. as 'an immutable 
model, ;but .points ; .but that he 
simply;; keep .. tip with 
demand, Qxdf 18.5 'per cent 



The historic Tree of ■ Guernica — the - enduring 
symbol of ! Basque national consciousness, where 
hist&ricauy ) Spanish momrchs swore to preserve and 
respect Basque national rights . The tree survived 
Hitler *5 bombs in 1937, ihe event which inspired 
V :v Picasso’s famous Guernica ” > 


(1,523); ■ teacheffs in the state 
system : ape .. native Basque 
; speakers, though 2,000 more are 
currently .being; framed. 

The cifipare,- department has 
20,000 adults currently in &ts 
night classes and feces the sane 
problem of ' overstretched 
resources. It, however, has a 
further 1,500 university 
graduates in3 montii/500 hours 
intensive courses which Sr 
Ramon Labayen, the Culture 
Minister, frankly admits are 
aimed' at the wnntzy’s elite— 
“those who -.wiE take charge 
tomorrow.^ .*v; 

Both departments have come 
under increasing; fire from the 
radical; nationalists, for this 
elitism: -Education, for example, 
subsidised private education to 
the tune of Pta 4.3bn last year, 
against Pte ,2.47bn for the 
ikastolas, - • Basque language 
schools which , grew up as a 
popular movement • in the 
twilight of- the Franco regime. 

Similarly, - the populist 
inspired ASK movement, which 
last month mobilised tens of 
thousands, of people around -the 
country, .on sponsored runs to 


whip up enthusiasm for the 
language, has come into sharp 
conflict with both departments. 
“They mobilise, we jteacih,” is 
the Government’s- answer. 

This ignores the political 
dimension of the problem and 
also the- -large number of 
teachers, 'possibly- a majority, 
sympathetic to radical natkma- 
Ksm. 

The Government believes that 
its decisive weapon, however, is 
television and broadcasting. Sr 
Labayen’s department has spent 
Pta L9bn this year and last 
setting up Basque TV, with 
German technical advisers and 
an initial staff of 120. Madrid 
promised a third channel : for 
the autonomous territories -two 
years ago but has done nothing. 
The Basque project.!* based on - 
the fourth channel— as foreseeh. 
in Article 10 of. the . statute, of 
autonomy— and SrLabayen says 
it will be going on the air in 
January with or without the 
central Government's allocation 
of transmissicmfrequencies. 

D. G. 


Banco de Bilbao. 
The Spanish bank 




international experience. 
Results for 1981. 





/ 

A ‘ 

I.9S0 

1.9S1 Increase 

% 



Capital Sc Reserves (Million Pesetas) 

56.820,4 

60.287,7 

3.467,3 

6,10 

Deposits (Million Pesetas) 

941.835,2 

1.044.097,8 

102.262,6 

10,86 

Loans (Million pesetas) 

591.577,1 

688.917,7 

97.340,6 

16,45 

Investments Portfolio (Million Pesetas) 

•109.984,8 

123.749,6 

13.764,8 

12,51 

Net profit (Million Pesetas) . . i 

7.869,1 

10.906,7 

3.037,6 

3S,60 

Net Profit After Taxes (Million Pesetas) 

5.846,1 

S.012,1 

2.166,0 

37,05 

Dividends per Share (Pesetas) 

77,2 

112,0 

34,8 

45,07 

Number of Branches 

1.176 

1.207 

— 

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THE BASQUE COUMFRY VI 


•. ... i . .. » 


Profile: Cartas Garaikoetxea 

President 
on a 



By Robert Graham 

AS HEAD of the Basque 
Government and leader of the 
Basque National Party, Sr 
Car;los. Garaikoetxea, has been 
treading a tightrope. From 
within the .Basque Country he 
has had to cope. with continuous 
demands for more — and greater 
— -independence from Madrid. 
At the -same time the . Spanish 
Government has been increas- 
ingly restrictive in interpreting 
the terms of the Basque 
autonomy statute approved in 
July 1979. 

“He’s got critics on both 
sides/’ says one Basque col- 
league. “He is expected to 
deliver the goods with as yet 
very limited powers but, in 
Madrid, whenever be tries to do 
this he is suspected of under- 
mining the unity' of the Spanish 
state.” 

That Sr Garaikoetxea (pro- 
nounced ' Garaecochea) has 
managed to carry off a balanc- 
ing act is a tribute to his tact, 
charm and -negotiating skills. 

Politicised 

Sr Garaikoetxea was bom in 
Pamplona, capital of Navarre, 
the, fourth Basque province, and 
It was hard for anyone growing 
up in the Basque Country in 
the Franco era not to become 
politicised. Sr Garaikoetxea 
tells visitors of how 4 he was 
made to eat an “ikurrma”— the 
green, red and white Basque 
flag-— by members of the 
security forces. 

However, he was relatively 
late to enter active politics. His 
initial background was in 
business. ' He was managing 
director of Eaton Iberia and 
later President of the Navarre 
Chamber of Commerce. Between 
1972 and 1974 Pamplona was the 
scene, of bitter labour unrest 
and his role on the side of the 
employers, who petitioned ' ibe 
Carrero Blanco Government for 
tough ' police action, is still 
resented by radical elements in 
the Basque Country. This said, 
he represents the liberal wing 
within the conservative and 
Catholic-orientated Basque 
Nationalist Party, PNV. " . 

From comparative obscurity, 
within the PNV, Sr- Garni- 
koetxea was elected to the presi- 
dency in March 1977. The fact 
that he was a native of Navarre, 



• Sr Garaikoetxea^- ■ 

- critics on both .sides 

whose Incorporation Into 1 the 
■Basque autonomous region was 
— and still is— strongly resisted 
by pan of the population, 
played a part in hia choice. But 
also his personahility and age-^- 
he is now 43— were very much 
in tune with Spam's new demo- 
cratic image. Indeed his good 
looks and elegant dress (he is 
-often teased for his Anglo- 
philia, having his suits made 
in England) gave the initial 
impression of a lightweight, 
controlled, by more determined 
and powerful figures within the 
PNV.- 

- But he. gave -Che lie to tMs 
impression by the way in 
which be personally wound up 
the arduous negotiations for the 
Basque autonomy statute.. It 
was he alone, in marathon ses- 
sions with the then prime min- 
ister Sr Adolfo Suarez, who put 
the finishing touches to ’ all 
contentious Issues. This gave 
him considerable moral auth- 
ority and fully established htm 
as the “ Lendkari ” or leader. 

The agreement was probably 
only possible in July 1979 be- 
cause the two men. established 
a degree! of trust and empathy. 
Ibis same empathy .and trust 
does not exist with the eew 
prime minister, Sr Leopaldo 
Calvo Sotelo. 

Sr Garaikoetxea takes a 
philosophical view of the dif- 
ferences that have given the 
Basques such a separate iden- 
tity and still create constant 
friction with, madrid. He is 
proud that, despite limitations, 
the Basque Country -has re- 
gained in the past IS months 
important aspects of autonomy 
and its own identity. He him- 
self has always been especially 
keen on promoting' the Bosque 
language, now taught in. all 
primary schools. 


Radicals command a third of the Basque votes 






POLITICS 


WHEN FRANCO died. In 
November 3975,- there were 632 
Basque 'political prisoners serv- 
ing a total of 3,500 years— an 
average pf over 22 hours per 
Basque- inhabitant- against an 
average of 25 minutes : pec In- 
habitant in the rest of Spain. 
' That- fact alone would set the 
Basque Country apart from the 
rest of Spain. The book-in which 
it i&pubiisbed-^-“The Spaniards 
who ceased- to -be so: Euzkadi, 
1937-81,” by Gregorio Manat— 
is a brave attempt by a Spaniard 
to explain ttr other Spaniards 
how -.40 years' of Francoism 
shoved the Basques back into 
a spiral of - separate develop- 
ment. As if to confinn its -own 
basic theses, the book is sealing 
quite well in the Basque 
Country 'but hardly afafl. in 
the rest of Spain. 

. fflter Franco’s death,- the 
vigour with which the 'Basque 
people pursued their demands 
—particularly the call for .an 
amnesty for political prisoners 
— Struck a chord in the rest of 
Spain. ; The- amnesty issue 
brought millions into thestreets 
of Spain. Between December 
1974 and May 1977, there were 
-16 general, strikes around the 
issue in the Basque Country, 
all 'of them -either initiated by 
the far and: pationalisf Left or 
in response to '.Government re- 
pression, which daring* this 
period claimed over 40 Basque 
lives. The most -successful of 
these' strikes spilled over into 
the. rest of Spain,' fuelling the 
forces of ruptura — calling for 
.a “democratic break" with the 
old regime— at that .time the 
official policy of a majority of 
the opposition. 

The dynamics of Basque and 
Spanish politics began deci- 
sively to diverge following -the 
-last of these strikes in May 
1977, five week£ before -the 
historic general elections in 
June of thatr year. 

The strike lasted in' the 
Basque Country far almost a 
week, during which the para- 
mHitaiy police shot dead five 
people. It again started to 
-spread into the rest of' the 
country, threatening the elec- 
tions themselves. But at the 
decisive moment the Spanish 
Communist Party made its 
official television debut — calling 
off the strike — and the danger 
was averted. The mainstream 








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Spanish' ■- . parties .' discarded 
. ruptura arid instead embraced 
Sr Adolfo Suarez’s reforma — 
the strategy o£ reforming the 
regime .. . while , leaving key 
pQlars of Francoisat, such as 
- the armed fhrces, the judiciary, 
and bfb&dcakting, in' place. 

The -* . Basques went their 
separate' Way, out of step with 
the restart the 1 state. When the 
reforms was consumated by the 
referendum- cm the new Spanish 
constitution in December 1978, 
the Basques again stood out, 
rejecting the constitution by ha 
overall inajority. 

* A political solution was 
found in , June 1979 with the 
Statute of Guerpica, the home- 
rule. statute' drawn up by the 
moderate Basque parties and 
.finally clinched in marathon 
personal negotiations between 
Sr Suarez, the then Spanish 
Prime' Minister,, and Sr Carlos 
Garaikoetxea, - • -the current 
Basque President. The Basques 
approved the- statute in a 
referendum that autumn, .on 
the strong recommendation of 
the historically mainstream 
party of Basque nationalism, 
the Partido Nationalism Vasco 
(PNV), and elected a parlia- 
ment the following MprchJ. . 

• Coalition 

Nationalist parties took -over 
two-thirds of the vote and AS 
of the seats in the 60-member 
.'Basque assembly. The PNV, 
with- over a third of the vote, 
took -27 seats; -Herri Batasuna 
(Popular Thirty), a radical 
nationalist ' coalition which 
shares the aims of ETA's mili- 
tary wing (ETAm) came second 
with around 20 per cent and 
II seats; a third nationalist for- 
mation, . Eiizkadiko Ezkerra 
(Basque L&ft) , spawned in 1977 
by ETA’s politico-military. wing 
(BTApm) , came 'fourth -with 
seven seats on some 10 per cent 
of the vote; The only Spanish 
party to get a look-in were the 
'Socialists -(PSOE5, '.with some’ 
15. per cent of the votes and 
nine ,'spatS. • - 

The PNV. is the only pald-pp 
member of the Christian Demo- 
cratic International in Spain. 
It is also, with the . excep- 
tion of its radical nationalist 
offspring; the only genuine mass 
party left in Spain! This 
is true sot only in. lie sense 
.that it can turn out tip to 
200,000 for a rally or demon- 
stration at the drop of a hat, 
but in that it is a highly 
cohesive, multi-class force with 
a. large working-class rank-and- _ 
file. Ideologically, it is an 
amalgam, of Christian Demo* 


cratSs so?*** democrats, liberals 
and simple technocrat — ail : 
held together by a eo mm irnie rc t 
to nationalism. \- 

mdeed the PNV is so. weil- 
esta Wished that it is ferquerifly 
criticised' for seeking to mono- 
polise Basque -social, pofltteaX 
and ecwnomto lifei'A le a din g . 
Basque journalist, . paraphras- 
ing Grainsd. described toe . 
PNV *s a “jrfifical party, con- 
stituted . as 'civil society.” And . 
while some of its -achievements, 
particularly "in the economy, 
have been impressive, i t governs 
without seeking legislative: 
consensus r ori . matters - which 

many Basques' regard as of 
national invest ". - ' • 

. The PNV faces Its main dom- 
estic challenge, from Herri Bat- 
asuna <HB), ETAm* and ! a 
weaker, .but often more trepcb? 
ant chafienge from Euzkad&ko 
Ezkenpa.-'-.' 

Euzkadiko ' . . EHcarra - ; has 
evolved into -!« considerable 
. force for stability- since Opting 
for the Statue of Guerarioa and 
home-rule' ratiier tibah iqdepen- - 
dence in 1977: In the lead' tap to 
negotiations oa fihe statute that 
summer, JETApm launched, a 
bombing- campaign across 

- Spain's' -coastal' rasocfe. Etfska.-, 
jJLfco Eskereatf apparent ability 
to" deliver 7 a ceasefire in ex-’ 
change for a generous , grant- of 
autonomy " : unquestionably 
sferengtiJ6med ! tiJie PNVs negoti- 
ating hand. ;■< ' 

EuzkadSco’ .Ericenra has befcn 
Strengthened by a merger wSfh 
the majority of -the. Basque 
Communist Party, after wWch. 
it fborraliy renounced kumri^c- 
tion and stressed its vriltinghess 
to d&end iSie Spanish consti- 
tution.. - Its invariable theme is 
.the need to normalise Basque 
'Society — to eradicate violence 
mid consofikfete.' autonomy — so 
that the real business of politics 
can be got on with. . . \ r ■ 

R&tfler -than strictly nation- 
alist, ji has become more of a 

- “new Left 5 ’ formation ..which 
-responrdp- .ito aflrJGaot $f. jjaSfflL 
In its. neV form. It will very . 
likely Increase its flhane-'af the 
vote in' future -elections. 1 

The Heni Batasuna /ETAm 
tandenv .with Us intransigent 
defence of a rup&tra wfoieh in" 
the" Basqde case wotdfl -include 
tire righit to selfdetermtoabion, 
a new amnesty, the reincorpor- 
atton of Navarre, and the. with- 
drawal of Spanish miHtaxy arid 
paramilitary - forces ...from 
Euzkadi, remains the zeal chal- 
lenge however. . 

. 'ETA isaits distinct forms has 
. existed for nearly a quarter -of 
a century 7 and. suffered nine, 
splits, usually along the nation- 


afist/feooraHst, armed • struggle/ 
pofitfcal action demarcation 
.tinea.' 

Herri Batasuna has “resolved” 
these dichotomies,, by refusing 
to address aibem . squarely 7 as 
- some of ftsleaderfi will privately 
.admit 'v ' : "~i . -'V' • " - . 

. PTA’s success. in halting work 
on - the Letnoni 2 nuclear power 
plant has 'pronqrted- the PNV 
into polarising the issue : into- a 
test of either loyalty to Basque 
autonomous institutions or sup- 
port for^ ^ terrorism. That is no 
doubt wbat ETA- wanted. ■*; 

■ Preinatare ■ '/ y 

- ETAm- Is weU-axzned and well 

financed . , arid a fince- to be 
reckoned ' with, despite the 
Spaaisb Interior; lEnistry's fre- 
quent 'i^'.prmnatare'&Be-uaee- 
mente of its demise. 3ut ibe cfe- 
dsive ; factor is tiiat it. has jfle 
active stqppbrt of some 200,000- 
foMowers.; : . . ' . . 

. The PXTV believes tiiat.lt has 
managed to. insotate its own 
constituency, which' : frequently' 
oveaiapped wifii- ETA’s, from 
the raffioal oontagkm by-1be 
pexstetent denunciation of viol- 
ence. TJfis Irak bad its effect ji 
making ETA more careful, in Its .. 
■use of terror.' - - 

..But that idoes not crack, the 
nut of the 200,000 ruptoristas of 
Herri - Batasuna, partictdariy 
VMhen, as on« Basquei leader put 
ft, Madrid takes st opbn itseif 
so frequently to prove tiiem 
<HB) right”- 

- Tire motoi legal Instrument 

to- roffl. back home-role is the 
LOAPA, or law to u haxsnonise 
-the autonomies,” currently be- 
fore ifle Madrid 'paffiamebt 16 
most BtiUeot features are to ab- 
olish aE “ exclusive M Basque 
jurisfficripn and make Basque 
’legdstokm subject to Madrid, 
leaving the Basque - parliament 
as an, empty shriL. . 

The PNV beJievestifaita deal 
might be possible vrith a future 
SoriaKst GoVOTtncnt . Tn this 
view, the Socialists, joist spon- 
sors of tiie LOAPA wftfii the 
XJCD^ want the law through 
quickly so os to lncur a mint 
mum of nationalist opprobrium 
and so as to be able to trade 
back the powers that the law 
abolishes in return' for future 
PNV support tn partiament. 

• Now while that has to be 
seen as an advance on the cur- 
rent impasse, tin. practice it 
simply puts Basque potitics 
bade to where they were h&ne 
months ago— not . the beat -ad- 
vertisement far a Basque Gov- 
ernment straggling to estahirsh 
its credibiffltQr.wftli all Basques. 

David Gardner • 


Moderates hope for gradual integration 





NAVARRE 


THE 1936-39 Spanish Civil War 
was also a civil war between. 
Basques,- the most lingering 
result of which- is. the still 
anomalous status d£ Navarre, 
('the disputed, fourth- Basque 
province. During the C3Vil War, 
the powerful and traditionalist 
Carlist sector of the Navarrese. 
population fought -with Franco, 
while most af the rest of the 
Basque Country sided with the 
Republic. 

Navarre was rewarded with 
considerable autonomy,- centred 
on a - powerful provincial 
government, the Deputation 
Feral. The Deputation's fiscal 
autonomy and control of credit 
allowed zt to invest heavily and 
attract industry into what was '' 
predominantly an agricultural = 
area — one in six Navarrans still 
work on the land— through a 
variety of tax and investment 
concessions. The results- ' are 
evident in the dense industrial 
belt' that icings Pamplona, the 
provincial capital. 

This structural transformation 
contributed heavily to a radical 
change in the s province’s 
political character. Tt tied the 
province more .closely into the 
Basque economy and at the 
same time fomented ,a high 
degree- of labour : radlcalisati on - . 
that easily- found sympathy ’ 
among other Basques >The, 1972 
and.. 1973 general strikes in 


Pamplona were among the most 
virulent challenges to be faced 
by the Franco regime, which 
put them down “by force. 

Since' Franro’s, death, elec- 
tions have confirmed this resi- 
dual radicalism. • In . the 1976 
factory . countii elections* 
Navarre was the} only province, 
in Spaing noT to return' 
majorities from the Communist- 
led Workers Commissions and 
Socialist UGT. . (then. largely 
controlled by Trotskyists any- 
way), instead voting for a now 
defunct Maoist union. In the 
' municipal elections of 1979, 
Herri- Batasuna (Popular 
Unity)', the' radical nationalist 
movement' . which shares the 
strategy of ETA’s military wing, 
failed to elect their candidate 
mayor of -Pamplona by a 
whisker. ..."•' 


The vested interests grouped 
round the old Diputacion Foral 
machine were meanwhile taken 
ah board' eiectorally by the 
ruling UCD, which. acceded to 
their. 'demands to keep Navarre 
separate from the emerging 
Basque autonomous territory by 
a . series- of- effective filibusters. 

. These interests have since 
gone through various transfor- 
mations on their way to their 
real political home, in the neo- 
Francoist Alianza -Popular party. 
.- -T h e Socialists, particularly 
since" last year’s abortive coup' 
have- acquiesced in -this policy, 


which earlier this year was for- 
mally consecrated by an 
“organic law” effectively eon- 
sti tuting Navarre as a .separate 
autonomous territory. • 

There for the moment- the 
situation rests, dangerously 
polarised and likely to blow up 
at any minute. 

But- no Basque nationalist, 
moderate or radical, will 
renounce Navarre. For the 
radicals it is an article o£ faith. 
It -is no less cardinal for the 
ruling PNV — Sr Garaikoetxea, 
the Basque President, is himself 
from Navarre. 

The . moderate =PNV, hopes, 
however, that integration - can 
take place gradualy by .conver- 
gence, on the basis of mutual 
interest and trust, possibly 
taking ' tho form of confedera- 
tion, at least initially.. Building 
on existing economic, integra- 
tion plays, a key part in this 
strategy — there are plans for 
example to extend the motor- 
way south of San Sebastian to 
meet the motorway which - ends 
just north of Pamplona, now 
used by 7 per cent of .the traffic 
passing through Navarre though 
built .at a cost of PtBLlShn. .. 

The motorway extension plan 
underlines two simple facts: 
that Navarre is too; small 
cconomicaly to make a go of 
autonomy alone; and -that any 
future it has lies in exploiting 
Its ■ position as the -Basque 
Country’s natural hfaWlanri. 

■ d.g. 



ASTILLEEGS 


2. SHIPYARDS 

1 FOUNDRY ■ 

3 DRYDOCKS FOR REPAIRS- V 

2 ENGINE FACTORIES - 


NEWBU1LD1NGS UP TO 
1 30.000TDW. 


DRYDOCKS Up T.Q T6J300 TDW. 


m€X: . 27690 ASTIL E 
-'■ / 32712-ASTiCE : 










ie 


10 




. - s - x - ■ ~- 


• /Mtiamal: Times Thursday June; 10 1982 


19 


ctoi 




* 3* 


■ie 


fii 




■ •• -j \ 

: ; r -' :r --"ia: 
?rca: 
7 £> 

. : . •..>« ^ 

■ — ' '■:* ’.tst 

: . £^. 
•‘t. : •' ■ ; ec: 
'■ • - -.'.Six 

David Gard 


BBC'} 


6^7i5 am, Open Univesrity 
fUltra High Frequency only) . 
9.05 For Schools/. Colleges. 1.00 
PB 'Ne*s. 1.2? Regional News 
for England (except London). 
IM Chock-a-BIock. 2.00 You and 
Me. 2.15 For Schools, Colleges. 
3.00 International Tennis. . 3.53 . 
Regional News far! ... England 
(except London). - 3415 Play- 
school. 420 Drak Pack. . 440 . 
The Littlest Hobo. ■ 5.05 John : 
Craven's Newsround. S.10 Blue- 
Peter. ' : 

.5.40 News. r 

. 6.00 Regional News Magaunies:' 

, ' .6.25 Nationwide. - — . .» . 

£50 World. ' Show Jumping 

■ • championships - 

’ 7J20 Tomorrow’s ■- World 
* 8.00 Top of the Fops .intro- 
i duced by Jimmy Savile. 

JL3D The Boys ’ of the . Old 

■ : - Brigade: The Queen takes 
■■■ the salute at the Chelsea 
:: :Pensioners march past on 
’ their. ■ ' Founder’s . 'Day 
- Parade. 

9.06 News, . 4 *'• . 

9.25 Oppenhetmer: The story 
. of the atom" bomb, starring 
r-: Sana Waterston. 

10.25. Question .Time chaired by 
Robin Day. 

108 News Headlines. 

1L30 Dylan Thomas: The. story 
of the writer’s early life. 


TELEVISION 


Chris Dunkley : Tonight’s Choice 

It is one of those too" rare days 'when television can rightly 
claim to be offering a range of programmes with something for 
virtually every taste, Including material which experience sug- 
gests Will be;of high quality. /The day starts early with The First 
Test against India at Lord's - on J3BC2 for anyone lucky enough to 
have tte dayttae free. 

: In the evening Tomorrow!* World (BBC1) features “ The Prince 
of Wales Award For Industrial Innovation And Production” 
which results from! Prince . Charles's claim on this programme 
three years ago that the British' were good at ideas and bad at 
turning ideas into products. Travellers In Time (BBC2) post- 
poned from Hist 'week shows Persia’s Bakhtiari tribe trekking to 
the summer pastures In 1924. Goliath Awaits (ITV) sounds like 
a more than usually far-fetched TV-movie about people surviving 
40 years in a sunken liner,' Part I is .tonight, Part II tomorrow. 

One of the competitors on Cajl My Bluff (BBC2) is Robert 
Burchfield, editor-in-chief of the Oxford Dictionary. Will that 
signify? Immediately afterwartg. Brass Tacks takes a detailed 
look at the lives of two boxers, Maurice Hope and Pat Cowde U 
At 1L30 BBCl presents Dylan' Thomas .from their Schools TV 
department, which so often produces excellent programmes. 


BBC 


6.40-7.55 am Open University- 

10.30 Play School. 

10.55 Cricket: First Test 
L35 pm Cricket and Tennis. 

. £.35 The Great Egg Race. . 
■fT.05 Charlie Chaplin in “The 
. Cure." . r - , 

7J5 News. 


' 7.40 Travellers In Time. 

6.10 Human Brain. *.v 

&00 Cali My Bluff. 

9.30 Brass Tacks Reports. 

1DJ.0 The Old Grey Whistle 
. . . i TggL 
1(L45 NewsnlghL 
UL30 Cricket: Test highlights* 


LONDON 


9.35 am Schools Programmes. 
12 . 00 ' Gammdta and Spinach. 12.10 
pm Get Dp and Go! 12.30 The 
.Sullivans. 1.00 News, FT. Index. 
l-Hi Thenies News. 1.30 Crown 
Court 2.00 After Noon Plus. 2.45 
Madge. - 5*45 Survival. 415 
I Gopher You. 4-20 Little House 
an the Prairie. 5-15 Kmmerdale 
Farm, 

5.45 NeWs. 

6.00 Thames News with 
-Andrew Gardner, Kita 
: Carter. 

625 -Help!: Community action 
"with Vlv Taylor Gee. 

6.35 Crossroads: 

7.00 Never the Twain starring 
Donald Sloden, Windsor 
Davies. 

7.30 Family Fortunes. 

8.00 Goliath Awaits. 

- 9.30 TV Eye. 

10.00 News. 

1045 Middle East— The Longest 
. War- 

11.45 Ladies 1 Man. 

12.15 am .What the Papers Say. 
*12.30 dose: Sit Up and Listen 
with Pam Gems. 

' f Indicates programme in 
black and. white 


BUSINESS LAW 


All IBA Regions as London 
except at the following times: — 

ANGLIA 

1.20 pm Anglia Naws. 2.00 Not "For. 
Women Only- 3J16 Nover the .Twain. 

4 .20 Fangfaca. 4.45 Tha Advanturas of 
Black. Beauty, ■ 8.00 About Anglia. 7JJO 
Survival. 7 JO Movie Memoriae. 11.45 
Lou Grant. 12L40 aim The Nuclear 
Clrattenga. 

. _ BORDER 

1.20 pm Border Nswa. 3*45 Never 
tha Twain.' 4120 Sport Billy. . 4X5 
Here's Boomer. S.15 Uni varsity Chal- 
lenge. . 6.00 Loofcarounrf Thursday. 7.00 
Emmerdala Farm. 11.45 Bizarre. 12.15 
am Border News Summary. 

CENTRAL 

1130 pm The Young Doctors. 1.20 
Caniral News. Jj 4B Never the Twain. 
4.2D Sport Billy. 4.46 Jason ot Star 
Command: 5.15. - Arthur . C;.i Clarke's 
Mysterious World. 5.00 Crossroads'. 
6.25 Contra 1 Nbws. •_ 7J» Empiardala 
Farm. rt.45 Central News. 11.6D 
Mire ilia Msthieu Specie]. • - 


CHANNEL 

120 pm Chennai Lunchtime Newa. 
3.45 Never the Twain. 5.20 Cfoo* roods. 
8JX) Chennai Report. S.15 The Incredible 
Hulk. 7.00 Benson. 10,43 Chennai Late 
News. 11.45 Mannlx. 12.40 am Newa 
-and Weather, in French.. - 

GRAMPIAN 

t-20 pm North News. 345 Never -the 
Twain. 6.00 North Tonight, BJ0 Police 
News. 7.00 Private Benjamin. 11.45 
Cover to Cover. 12.15 tun North Head- 
lines. ' . 

GRANADA ; 

1JO pm Granada Reports. .. IJ0 . 
Exchange Flags. 2 JX> Crown Court. 
2J0 Yesterday. 3.45 Never the Twain. 

4.20 Spider man. 4 AS Uttla House on . 
the Prairie. 6.00 This la Your Right. 
8.06 Crossroads. 630 Granada Reports. 

7.00 Emmerdala Farm. 11.45 What the 
Papers Say. 12.00 Lata Night From Two. 

HTV 

1.20 pm HTV News.- 3.50 Never 
Twain. 4J® Here’s Boomer. 4.45 The 
Flying KiwL 5.05 JobUne. 5.15 Benson. 


0.00 HTV Newa. 7.00 Emmerdala Farm. 

_ 10.43 HTV Newa. 11.45 Lou Grant. 

. 12-45 What tha Papers Say. 

’ HTV Cymru/Walaa — As HTV West 
except: 93&-H.50 am Wales end the • 
See. 11.22-11 J7Yn Eu Cynofln. 1200- 
12,10 pm Mister Clal. 420 Murphy’s 
Mob. 4.45-5.15 S4r. 6.00 Y Dydd. 
6.1&-B.35 Report .Wales. 

SCOTTISH 

120 pm Scottish Newa. 3.45 Never 
tha Twain. 4.20 Jaoglss. 4. SO Sport 
Billy. 5.20 Crossroads. 6.00 Scotland 
Today. 8.30 Benson. 7.00 .Em ms Ida Is 
Farm. 11.45 Saicbd Lalthsan. 1215 am 
Late Cali. 12J0 Barney Miller. 

TSW 

120 pm TSW News Hsadllnaa. 245 
Never the Twain. 5.15 Gua'Honeybun'a 
Magic Birthdays. 5.20 Crossroad*. 6.00 
Today South-Wail 630 Scene South- 
West. 10.47 TSW Late News. 11.45 
Man nix. 12.40 am Postscript. .. 

TVS 

1.20 pm TVS Nawa. 200 Not For 
Women Only. 5.15 Watch Thla Space. 
5J0 Coast to Coast. 7.00 Emmardala 


Form. 11.45 Quincy: Cover-up. 1240 am 
Company. 

TYNE TEES 

9.26 am The Good Word. 9.30 North- 
East News. 1.20 pm North-East News. 
3.45 Never the Twain. 4.20 Tha Lone 
Ranger. 4.50 Voyage to the Bottom or 
tha Sea. 6.00 North-East News. 6.02 
CroBaroadi. 6.25 Northern Life. 7.00 
Emmardele Farm. 10 JO North-East 
News. 11.47 Job Slot Extra. 11.50 
Check It Out. 1220 am Tha Sound of 
Silence. 


ULSTER 

1.20. pm Lunchtime. 246 Never the 
Twain. 4.13 Ulster Newt. 4.20 Pelmara- 
town. 5.15 . Jangles. 6.00 Good 
Evening Ulster. 6.25 Police Six. 7.00 
Emmardala Farm. 11-45 Nawa.' 


YORKSHIRE 

1.20 pm Calendar News. 345 Never 
the Twain. 420 Sport Billy. 4.45 Little 
House on tha Prairie. 6.00 Calendar 
[Emley Moor and Balmont editions). 

7.00 Emmardala Farm. 1145 Crown 
Green Bowling. 


(S) Stereo broadcast (when 
broadcast on VHP) 

RADIO! 

- 5.00 am As Radio 2 7.00 Mika Head. 
9 -00 -Stave . Wright. 11.30 Dave . Lee 
Travis. 2.00 pm Simon Bates.. 4J0 
Peter Powell. 7.00 Wallers' Weekly. 

8.00 David - Jansen. ' 10.00-12.00 : John 

Paei (S). . 

5.00 am Steve 'Jones IS). 7.30 Tarty 
Wogan (S). 10J» Jimihy Young (S). 

12.00 Gloria Hnnnjford-.(S). -2.00 pm 
Ed Stewart (S). 4l00 David Hamiitdn 
(S). 545 Nawa: Sport. 8JDO John- Dunn 
(Sj. BJ» Country Club (S). 9.00 In 
Celabratiah' of Jody Garland (S). 10.00 
The . lmprasaionista. K> JO Star Sound 
Exits. 11.07 Brian Matthew with Round 
Midnight .(stereo from midnight).. T.OO 


RADIO 


am Encore (S). 200-5.00 You" and the 
Night and tha Music (5). 

RADIO 3 ' 

6.55 am Weather. 7.00 News.- • 7.05 
Morning. Conceit (S). 8.00 News. 8.05' 
Morning Concert (continued). 9.00 
News. 9.05 This Week’s Composer: 
Vivaldi (S). >10.00 Tchaikovsky (S). 
1045 Music of Jacobsen England (S),. 

11.20 City of Birmingham Symphony 
Orchestra- (S). 1.00 pm Naws. 1.05 
Manchester Summer' Recital (S). 2.00 
Dsr. Feischutz (S). 4.35 Chopin and 
Racfimantnov . (S). 4.55 Newa. 5.00 
Melniy For Pteasure. (S). 6J0 Band- 
stand (S>. 7.00 Handel and Zelenka 
IS). 8.00 Gu/livar's'Traveia (S). 9.25 
Beth Festival .1882 Chamber music and 


songs: Stravinsky, Dominic Muldowney. 
Ravel. Stravinsky (S). 1025 Muilc In 
Our Uma: Hughes Dufourt. record (S). 
11.15-11.18 Naws. 

Medium Wove as VHP except: 1045 
am-SJO pm Cricket: FI rat Test, England 
v India. . 

RADIO 4 

8-00 am Naws Briefing. 8.10 Farming 
Today- 6 25 Shipping Forecast. 6 JO 
Today. 8 J3 Yesterday in Parliamem. 
8.57 .Weather: Travel. 9.00 News. 9.06 
Checkpoint 9 JO Tha Living World. 

10.0 News. 10.02 As It Happens. 10.30 
-Daily .Sarvica.' 10145 Morning Story. 
11 JX>. News. 11.03 Tornadoes In the 
East 1148. Enquire Within. 12L00 
News: 1202 pm You and Youre. - .1227 


Brain of Britain 1082 (S). 126S 

weather; Travel; Programme newa. 

I. 00 The World at One. 140 The 
Archers. 1.56 Shipping Forecast 200 

.News. 2.02 Woman's Hour. 3.00 
Naws. 3JB Afternoon Theatre (S). 
440 News. 4.02 One Men's View. 
4-10 Bookshelf. 440 Story Tims. 6.00 
PM: News magazma. 5.60 Shipping 
Forecast .5.55 Westher: .Programma 
news. 6.00 News, including Financial 
Repon. 6 JO Any Answers? 6.45 It's a 
Bargain. 7.00 News. 7.06 The Archers. 
7 JO Concert Prelude (S). 7.30 Menuhin 
conducts the Royal Philharmonic 
Orchestra, part 1: Schubert Walton 
IS). .8.30 Unclouded Blessing. 8 JO 
Concert part 2: Elgar (S). SJO Kaieido- 
stiepe. 9 J9 Weather. 10.00 The World 
Tonight. 11.00 A Book at Bedtime. 

II. 15 Tha Financial World Tonight. 
11 JO Today In ParHewant 1200 News. 


Now a company may buy its shares 


BY CELIA HAMPTON 


THE INSTINCT of commercial 
man to join forces with his own 
kind to promote mutual advan- 
;tage is a surprisingly, recent 
phenomenon. Business' life 
would be inconceivable without 
the limited liability company. 
Even consuming T D-**h now has 
more -trust in a corporate sup- 
plier than in an unincorporated 
individual. This was not always 
the case, and the .individual's 
willingness to commit' his per- 
sonal fortune to his business 
ventures was formerly regarded 
as an advantage. 

The first foundation of the 
modem company was not laid 
until 1844 when Gladstone, 
then President of the Board of 
Trade, issued a . committee 
report on the “joint stock 'com- 
pany.” Under tile enactment 
following the. report, capitalist 
and entrepreneur could set up 
in business together by regis- 
tration of a body which had a 
legal identify independent of 
themselves. • 

Before this far-sighted action, 
some sharing of the risks of 
business ventures had been 
possible through the institution 
of partnership. Companies, in 
the sense of the South Sea 
Company of disastrous repute, 
had their origins in a quite 
different function. Set up by 
charter or Act of Parliament, 
they were intended to provide a 
monopolistic control o# foreign 
trade and other public ventures. 
They were not unlike the 
modem nationalised companies 
which are envisaged as protect- 
ing the public interest , by 
exercising a state monopoly. 

★ 

When this function began to 
recede, adventurous - entre- 
preneurs acquired the com- 
panies for wholly different and 
often unscrupulous ends. For 
example, a banking partnership, 
itself involved in the South Sea 


Babble, operated as the “ Sword 
Blade Company,” already con- 
veniently chartered to make 
hollow sword blades. Other less 
scrupulous entrepreneurs ' did 
not even bother to get a 
chartered company. 

In 1720 ail this came to an 
end. Illegal non-chart ered com- 
panies were condemned ' as 
“tending to the common Griev- 
ance, Prejudice and Incon- 
venience of His Majesty’s 
subjects” and were declared 
void by the “Bubble Act.” 
Although some respectable com- 
panies survived,- the public 
understandably lost all interest 
In subscribing to corporations. 
The penalties for dealing in 
their shares, invoked once in 
1723, were' not needed again 
until 1808. 

, * 

Promotional activity for com- 
panies resumed at the turn of 
the 19 th century, and by the 
1840s pressure for' a common 
form of legal company had 
built up. However, it was not 
until 1S55 that limited liability 
was finally introduced. The 
public controversy about it was 
intense. The South Sea Bubble's 
victims had, by and large, been 
the investors. A d amorous 
opposition in the ISSOs saw 
limited liability as a Rogues’ 
Charter designed to exploit the 
creditors. 

Companies have, of course, 
come a long way since 1855 and 
company law has, if anything, 
come even further. Until 1967, 
a major Companies Act was 
roughly a 20-year event The 
next one came after only nine 
years, and 1980 and 1981 both 
saw important companies enact- 
ments, largely due to the UK’s 
duty to Implement Common 
Market directives. 

Next Tuesday, most of the 
outstanding parts of the 1981 
Act will come into force. From 


that day, companies will be able 
to buy th’eir own shares. 

By a curious chance, the Ille- 
gality of this activity was based 
on a House of Lords case of 
1887* and Parliament did not 
actually enact it as a statutory 
principle until 1980. The reason 
for the rule was obvious enough. 
— the maintenance of the value 
of a company’s .capital. While 
you cannot legislate .against a 
company making trading losses, 
you can stop it paying back its 
shareholders to the detriment of 
the creditors. In practice, the 
rule Was unnecessarily rigid and 
operated particularly to the 
disadvantage of the small com- 
pany, possibly in family control, 
which could not buy out a 
retiring or deceased member of 
the company. 

The 1981 Act adopts a three- 
pronged approach to the 
liberalisation of the rule, 
first, and subject to many 
safeguards, companies may buy 
their own shares. Secondly, 
they may issue redeemable 
equity shares — formerly these 
had to be preference shares. 
Thirdly, the facility for a 
private company to assist an 
outsider financially in connec- 
tion with its own shares or the 
shares in its holding company 
is significantly extended. 

★ 

The second of these liberalisa- 
tion measures is relatively 
minor. The redemption fund set 
aside by the company to finance 
the redemption of shares must 
come from distributable profits 
or a fresh issue of shares, and 
any premium payable on 
redemption must he paid out of 
distributable profits. 

The extent of the first and 
third measures varies according 
to whether the company is 
public or private. A public com- 
pany may still not buy its own 
shares out of capital, nor may it 
generally speaking, finance a 


simple acquisition of its shares 
by an outsider. 

A private company, on the 
other hand, may make a 
“permissible capital payment” 
to buy its own shares without 
making a counterbalancing pay- 
ment into a reserve. This, in 
effect, means that the capital 
may be depleted. Section 54(2) 
of the Act requires “available 
profits” and the proceeds of 
any fresh issue of shares also 
to be used, but it is not clear 
whether these possibilities must 
be exhausted before capital is 
used. This would seem to be a 
reasonable interpretation. 

The third liberalising measure 
for private companies has been 
in force for some months. The 
company’s “net assets” must 
not be reduced or, if they are, 
the assistance must come out of 
distributable profits. In other 
words, capital cannot be used 
for this purpose. 

These activities require a 
special resolution of the com- 
pany and the creditors are 
further protected by the require* 
ment on the directors of tha 
company to make a statutory 
declaration that “ there will be 
no ground on which their com- 
pany could then be found to be 
unable to pay its debts.” 

The effect of this is by no 
means obvious. Do those debts 
include contingent liabilities? 
If so. it would be difficult for 
some companies ever to assert 
that they could cover them. 
Take the case of an insurance 
company, for instance. On tha 
date on which the directors had 
to make the declaration, would 
they have to assume that every 
life-assured will die, or that 
every house will be burgled or 
destroyed by fire? The penalties 
for making a false declaration, 
are severe, but will a director 
ever dare to make a declaration 
at all? 

m Trevor V. "Whitworth (1887) 
12 App Case 409. 


RACING 

BY DOMINIC WIGAN 


IT IS not often that Bill Watts, 
a trainer at Richmond, York- 
shire, sends horses to Newbury. 
He must be hopeful of his one 
representative there today, 
Navarino Bay,' landing the 
Kingsclere Stakes. 

A twice-raced filly by Aver of 
out of the Firestreak mare. 
Black Fire, Navarino Bay made 
short work of of a 7-4-on oppo- 
nent, A1 Was hi. at Newcastle 


.a month ago. before failing nar- 
rowly to concede 7 lbs to Fair 
Heroine at Ayr towards the end 
of the month. 

Although beaten on merit on 
the Scottish course, Navarino 
Bay was rallying to such effect 
over the fifth and final furlong 
that she could easily win over 
six furlongs this afternoon. 

Of -her eight opponents, Bri^it 
Crocus .must be the pick. On 
her sole appearance to date, 
this Warren Place filly could 
hardly have been unludtier in 
defeat at Windsor. Had Piggott 
not taken things too easily 
there — and looked over- - the 


wrong shoulder — Bright Crocus 
would - have comfortably held 
off Henry’s Secret. 

In the other big race on what 
is always an interesting card, 
the Newbury Summer Cup, that 
consistent performer Valen- 
tin ian will try to concede up- 
wards off 18 lbs to seven rivals, 
which include the remarkable 
veteran, Le Soleil. Valentinian 
ran a sound race to finish fourth 
behind. Karadar and Keelby 
Kavelier, which finish ed the 
Hiddlegate Handicap at York 
In a dead-heat, on his seasonal 
debut and I do not oppose Mm. 

A more attractive bet Is his 


stable companion. Work Mate, 
in the Qhildrey Maiden Stakes 
Last time out, at Salisbury, 
according to Raceform Note- 
book. “he suddenly took hold 
of the bit approaching the final 
furlong and tore through the 
field band over fist He is get- 
ting fitter and learning too.” 
NEWBURY 

3.00 — Valen tinian 

3J30 — Navarino Bay*** 

4.40 — Balanchine 

4^0— Work Mate ** 

5.00— Inversale * 
BEVERLEY 

3J5— Domynsky 

3.45— Don Presto 


1 


’ince 




v 


• v. >•' 






ORDINARY ANNUAL GENERAL MEETING OF SHAREHOLDERS HELD 

In Madrid on 27th May 1982 


. -The following are extracts from the address 
delivered by the Chairman of the Board of Directors* ^ 1 
Mr. Abdulla A. Saudi. 

— Aresbank continued Its healthy development 

— : throu^apdicyofsoundcfive^ 

maintaining a banker's traditional prudence. 

— Net income before proviaonsfor possible loan 
Jos5& and income taxes amounted to Ptas. Z060 
Million, (equivalent to US$ 21.17 MHfion) 
compared with Ptas. 1.225 Mflfion for 1980, a rise 
of 68%. 


1X)65 Million, nearly double the 1980 %are of 
Pte. 565 Million: 

Total fore%n currency and Ptas. deposits at the 
end of the year totalled the equivalent of U5$ 
1258Milliori. 


- By the end of 1981, Aresbank had completed the . 

' restructuringofBancodelaBq»itad6p,S.A- 

BANEX, in which it obtained a controlling interest 
in April 1981. BANEX is now an effiaent and 
profitable bank able to provide financial 
aaristarice and advice to medium and small sized 
firms m the Valenda area, e^ecialiy to those 
operating in Arab markets. 

- The Chairman made reference to the election of 
Aresbank as "Bardc of the Year for 198T'-at the 

.. banking forum organized by the prestigious 
magazine DIN £RO. 

- TheBarcetonaofficewasopened.tothepuHicin 
March 1982', thus allowing Aresbank to service 
conveniently the important business community . 
In the Catalonian area. 


AUDITED BALANCE SHEET* (in Thousands of Spanish pesetas) - December 31st 1981 
Mid market rate of exchange: 1 US S = 97,31 pesetas. 


ASSETS : 


Cash and Bank of Spaia .* 

Due from barter 
Pesetas" 

FbreJgiOHrency 

Loan and b3 portfolio 

P e s e t a s- 

ftxeljyi currency- - ~ 

noiftimkxpostiltefeaharidbgiksses 


investments 


Bank premises andeqiipcrent net of 

' dbwancesfcrdeptedtfwi; 
Goodwill 


258,028 

1,821/451 

63,919475 

61^740,926 


Other aseS • .. '? . ; 

Customs's IdJ^fotixumentaty - . 
qgft^acoepancesaadgiaontow : 


stetementiOTaraS^^ 


16755,829 
37.910995 
, 54^824 
1659,406 
53,007,41 B 

' 1,459,488 
-3/164,865 

1/185569 

$813,136 

55,742 

120585,172 


57,420077 

156005,249 

78 . 760.005 


UABILTnES AND SHAREHOLDER'S EQUITY 

DeoandBeppats !/-.!!. • ^357,885 

HmedepoatE 

Pesetas. -‘ - . . . 11,230475 

r " .Foretgntimfency ■ '99730119 

Cashlxiodb 

AcauedmteiestpwyiWe 
RafaaxmtGdbffls-Barik6fSpaffl 

Cureot income tat 
Other BabSfies 

Pension Plan 
Mnontaiymtered: •" 

SHARB«XbKS6QtJlY ■ 

. Share cap&al 

50icrfcapM'ncma3enot>ttp^din 


110960,594 
1,000,000 
3 , 554,659 
% 356;000 
. 229*82 
703,907 - 
T22/I7V27V 


Retained 
Netlhoomefcir 


yaar- 


k»40RANDlMAGQDUNTS 


* -‘5250000 
1.125,000 
4,125,000. 
%222fli3 
1.065.432 
0412A45 
120585,172 

27,420077 

156,005,249 

78760,005 


i in Pesetas aucltad by EnistiWWrineyMauffitedttiaocjal 




Conferences by 
People who care 


( '• i rit- it *. Nifiel Pai ter.son 

tin; { i IM;)., i 


leisure 


Se-s 


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Blackpool is now in the process of a multi 
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Conference facilities at existing venues are 
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THE PEMBROKE 

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20 


THE MANAGEMENT PAGE : Marketing 


•- ■ s-*r. 


Financial Times ThuKfeyXTuneilO;>19S2 / ^ . ; 


EDITED BY, CHRISTOPHER LORENZ 


Why Surf stopped soft-soaping women 

David rh nr rhiH looks at how a detergent maker got in a lather about sexist advertising' 


SELLING soap-powders on tele- 
vision is a classic case of how 
the advertising industry often 
adopts a condescending attitude 
towards women — an attitude 
that has come in for sharp criti- 
cism recently in two separate 
reports* from the Equal Oppor- 
tunities Commission and the 
Advertising Standards Author- 
ity. 

The EOC, for example, com- 
plained that much advertising 
used “outdated stereotypes de- 
signed to keep women in their 
place . . - the bed and the 
kitchen.” 

Most detergent commercials 
amply illustrate this point, 
deliberately presenting the 
“ little woman at home " 
cHched picture of a housewife. 
Traditionally, such commercials 
have adopted two main formats: 
either the hard seH “demon- 
stration ” commercials with 
their patronising male person- 
ality advising the housewife 
how to get the best out of her 
wash; or the pert Bttle actress 
— portraying a “ typical ” 
housewife — who professes with 
some amazement that her brand 
of detergent washes whitest! 

■ Yet as both ’the EOC and 
ASA studies clearly implied, 
there is a growing body of 
opinion within the advertising 
world which believes that 
appealing to such stereotyped 
images of women may do more 


FRONT LOADERS SPEARHEAD LOW SUDS REVOLUTION 


The UK market for soaps and 
detergents in 1981 was worth 
£502m in value at retail 
prices and some 823,000 tons 
by volume, according to a new 
market report prepared by 
Lever Brothers. . 

The report updates a 
s imilar survey carried opt in- 
1979 and shows that while' 
market value has risen by a 
quarter since 1979, volume 
has risen by only &$ per cent. 

Most of this volume growth 
came from the low suds wash- 
ing powders section of the 
market which accounts for 
about 25 per cent of the whole' 
market by volume and 27 per 
cent by value. 

The growth of the low suds 
powders market has been 
mainly due to the higher 


proportion of households with 
front - loading washing 

machines. According to the 
report. Lever Brothers had 
some 59 per eent of the low 
sods market last year (from 
. its Tersil and Surf brands) 
while Procter and Gamble had 
32*2 per eent (from Bold, Daz 
and Ariel Automatic). 

Two other fast growth 
.. markets were for fabric condi- 
tioners and liquid scourers. 
Sales of fabric conditioners, 
.< wbch- are added fa the final 
"rinse stage of the washing 
process; have grown in line 
with the greater use of auto- 
matic washing machines. 

However, sales of liquid 
. scourers — an alternative to 
abrasive cleaners— have more 


than doubled over the past 
five years as a result of a 
boom in kitchen modern- 
isation with consequent 
greater nse of stainless steel 
and piastre laminate surfaces. 
Sales are now worth about 
f 12m a year. 

of market .shares 
for soaps and detergents give 
Lever Brothers a 41 per emit 
share, compared with 31 per 
cent for Procter and Gamble, 
5 per cent for Colgate-Palmo- 1 
live and 23 per cent for 
others, mainly own-label 
brands. 

Average spending . per 
household on all soaps and 
detergents in 1981 rose by lp 
to reach 46p per week, accord- 
ing to the report. 


harm than good for advertisers 
in the changed conditions of 
the 1980s. 

The London advertising 
agency SSC&B: Lintas is cur- 
rently claiming to have taken 
a small but significant step to- 
wards the emancipation of 
women in detergent commer- 
cials with its current £lm 
national campaign for Surf 
Automatic. The campaign aims 


-to appeal to women for whom 
washing clothes is not the most 
important thing in their daily 
Jives: instead, it is a chore to 
be undertaken with a minimum 
of effort 

Front-loading washing 

machines offer the- technology 
to simplify washing and — it 
is argued — Surf is the no- 
nonsense washing powder that 
can be “ trusted ” to get the 


best results while offering value 
for money. 

Most other detergent commer- 
cials attempt to imply the exact 
opposite — washing clothes is 
seen as & prime function of a 
woman's daily life and, more- 
over, should be viewed as some- 
thing of a competition with 
other women (hence the empha- 
sis on detergents which wash 
the whitest). 


Allan Morganthau, creative 
director at Lintas, admits that 
“ we were lucky to have a rii«»nr 
brave enough to allow us to 
break the mould i md tread new 
ground with Surf Automatic." 

That . client was Lever 
Brothers,* whose Perea brand 
dominates detergents with about 
half the market for low-suds 
powders used in automatic 
washing- machines. Persal has 
achieved: its market share suc- 
cess by. pu r s ui ng a consistent 
strategy over the past 12 years 
(since it was launched) of 
appealing to the “caring” mum. 
The theme is that if a housewife 
uses Feral, she is demon- 
strating her care and affection 
tor her family. 

Surf, however, has always 
been deliberately presented as 
a more down-market, value-tfor- 
money detergent, and its adver- 
tising has consequentiy beat 
low-key and traditional. 

However, what prompted the 
present change in strategy was 
the realisation by both Lever 
and T-A ntas of the changing 
roles of women. lintas started 
the process winch led to the new 
a pp r o ac h with a major research 
project in 19S0 — costing some 
£20,000— entitled Mis Britain." 
Tins research identified four 
key roles for women— worker, 
housewife and mum, consumer, - 
and player— an of which pro- 
duced . confiding pressures on 





women. 

1 Such conchiaons were hardly 
new or surprising— but tixey 
were part of the process Iantas 
adopted to help identify the 
grand strategy it felt Lever 
should -adopt in the 1980s. 

Further research was under- 
taken.' by means of groups of 
women discussing their attitude 
towards de t ergents. This dearly 
identified that there were sig- 
nificant numbers of women 
who wanted a safe, all-purpose 
detergent which needed no 
special. case, and which enabled 
them to get on with other 
aspects of feeir Jives. 

The Lintas strategy also re- 
flected Che growth m muribers 
of women at work over the last 
decade and the Ifigher propor- 
tion of homes with automatic 
washing machines- Market 
share has afenost doubled over 
the past five years. 



Tim Isaac. Lintas’s account 
director for Surf, -adds that the 
group discussions left women 
“impressed. with' bur advertising 
approach, which reflects back 
at them (hear own tfew of how 
their world ahou&dbe, with time 
for activities other tion domes- 
tic chores, and also feat -house- 
wives are not role-bound and 
completely f amly-ori eotated 
idiots.” 

The two main 4frsecood com- 
mercials .feat were produced 
both focus on a. Surf , packet 
against a white - background. 
However,' special camera and 
production .tricks enabled .fee 
packet to be converted into, for 
example, a tennis racket holder 
or as a magazine cover. The 
idea was that this indicated feat 
using Surf was' fee key to giv- 
ing women lime to do other 
things, such as play tennis or 
read a magazine. 


The Vvoidedver, tells ' the 
viewer... feat . she . can “ treat 
today’s. Surf and get on doing 
tin the things yoa have to do 
(ie, fee washing)' - and some 
of fee things yon want to do 
(play tennis or reacting). . 

According to Lin ta s , the early 
results from the campaign feow 
that Surf Automatic has moved 
into third place just behind 
Arid' Automatic (from Procter 
and Gamble)-. Which -' Lintas 
claims has a much higher adver- 
tising budget. : 

* 11 Adman, and Eve, 9 * available 
free from-the EOC, Overseas 

1 House! Quay Street* Mm- 

• Chester M333N; :*_ 

“ Herself Appraised: ih& treat- 
ment of women in advertise- 
mentt,” ^published by, the 
ASA, Brook Bouse, 2*16, Tor- 
■nrigtxm Place, London^ WC1* 
£75. ■ 



Clarice: Followed 
rule 


ALTHOUGH Jim Clarke's group 
of companies has come through 
the recession not only intact but 
growing, a slightly haunted look 
comes into his eyes when you 
ask about it 

He won’t say how close run 
a thing it was, but the prob- 
lem he faced can be summed up 
in one chilling statistic: five 
years ago. three quarters of his 
business was in classified adver- 
tising, most of it in the princi- 
pal casualty of any recession, 
recruitment 

Yet Clarke has more than sur- 
vived a sitifetion that should 
have been calamitous. He did so 
by radically rhangiwg his group’s 
mix of activities. Now, classified 
advertising plays a much smaller 
role and he has just beaten off 
the challenge of 27 other adver- 
tising agencies to win his most 
coveted account — Britain’s first 
international garden festival, to 
be held jn Liverpool in 1984 and 
a focal point of government 
efforts’ -‘to regenerate Mersey- 
side. 

- Clarke has nine subsidiaries 
or profit centres in bis group 
but activity is concentrated in 
fee two that are most well 
known nationally, J. Bernard 
Clarke Advertising (JECA) and 
Lee and Nightingale. He is fee 
sole owner of the group and 


‘Tell your clients what else you can do’ 


employs a total of 42 people in 
Leeds, Manchester anti at the 
Liverpool headquarters. 

Clarke bought Lee and Night- 
ingale for £28.000 in 197L It 
was billing £110,000 and he 
kept it very quiet feat JBCA 
was at the time billing £20,000 
]«ss. An ambition was being 
fulfilled; he was buying fee 
company where he had started 
in advertising as a clerk nearly 
20 years before. He was also 
buying a great* deal of- long 
established goodwill, for Lee 
and Nightingale was no less 
than 117 years old, and specia- 
lised in classified advertising 
for loctil authorities, hantfl-iTig 
public notices and situations 
vacant 

Clarke built on feat goodwill 
throughout fee 1970s and put a 
lot of creative effort into im- 
proving fee look and content 
of full- display classifieds to 
increase effectiveness and give 
better value tor money. The 
agency seemed secure in the 
public service and recruitment 
sectors, especially tince the 
reorganisation of local govern- 


ment caused a massive surge 
in jobs with the new authori- 
ties. Billings soon passed £lm 
a year, a healthy level tor a 
small provincial agency em- 
ploying less than 20 peojfle. 

Clarke at feat time had an 
inbuilt edge over rivals; he was 
himself a councillor wife 
Wirral Borough, becoming Con- 
servative chief whip and chair- 
man of the watchdog com- 
mittee that monitored' effici- 
ency. He knew what local 
authorities needed and was 
able to pick up fee accounts of 
a long list of them all over fee 
north, as wril as offering his 
specialised recruitment ser- 
vices to the private sector. 

“ 1 could also see what was 
coming.” he says. “ 1 knew that 
eventually fee Conservatives 
would implement public spend- 
ing cuts and that the recruit- 
ment market would suffer. That 
would have happened anyway. 
The recession . made it even 
worse.” 

By 1978 he was already work- 
ing on how to shift his group’s 
mir of business by building up 
fee more generalised activities 


of JBCA dropping Out of 
politics a' year later to devote 
all his time to it. 

. He followed one cardinal 
rule. “The easiest business to 
get is always from your exist- 
ing clients," he says. “ We 
started telling them what else - 
we could do.” This meant 
majoring on the growtog need 
of local authorities to promote 
industrial development ' 

. Clarke says: “ It’s : always 
exciting, of coarse, 1 to make a 
big presentation for new busi- 
ness but it’s expensive and fee 
risks are high. It’s a tor more 
successful policy in fee long-run 
to use existing trust and good- 
will and build on what you 
already have.”. The advantage 
Clarke bad was that as a 
classified specialist Lee and 
Nightingale inevitably had a lot 
of clients for JBCA to sell to. 

How fee policy has paid off 
can be seen from fee figures. 
Typical classified hillings in fee 
mid-1970s , were £130.000 a 
month, rising to £ 180,000 in the 
peak local government recruit- 
ing periods of April and 
September. Current billings in 


Extracts from the Report of the Committee and 
Statement by the Chairman at the 1 15th Annual 
General Meeting held in London on 9th June 1982. 



Ottoman Bank 

Incorporated in Turkey with Limited Liability 


COMMITTEE 

Mr. Babington Smith retires at this General Meeting. We express 
our great appreciation to him for ail the services he has rendered 
to the Ottoman Bank over a king period. He became a Member 
of the Committee in 1947, Deputy Chairman in 1953 and Chairman 
m 1975. Mr. Geoffrey Elliott resigned from your Committee at the 
end of 1981. We have co-opted Mr. A. Stewan-Robem. who is a 
Senior Director of S. G. Warburg. 

TURKEY 

In Turkey. 1981 was a year of considerable achievement. Political 
violence was largely eliminated and measures were started to 
reintroduce democratic government within the next two years. 

On the economic front the stabilisation programme, introduced in 
early 1980, was maintained with very gratifying results. Exports 
and workers' remittances exceeded forecasts; the current account 
deficit showed a significant reduction from $3,210 million in 1980 
to $2,092 million m 1981. Turkish contractors now have very 
substantial operations in Arab countries and transit trade to 
adjoining countries also underwent considerable development. 
Inflation- was greatly reduced, but there has been a slow down in 
industrial output and higher unemployment. 

The prospects for 1982 are on the whole encouraging. Foreign 
exchange contributions from exports, workers’ remittances and 
other sources should continue their upward trend but internal 
demand is likely to be stagnant. 

Our branches continued,, within the scope of our Convention, to 
expand in 1981, during which we opened 15 new branches. 

On a number of occasions in previous years, we. have informed you 
of our attempts to transfer our business in Turkey to a company 
established under local law and thereby to bring our Convention 
to an end. For various reasons these attempts could not be 
successfully concluded. However, in recent months such talks 
have been reopened, both with the appropriate authorities and with 
various groups of Turkish investors with a view to the transforma- 
tion of our branch network in -Turkey into a bank incorporated 
under Turkish law, in which these investors would hold a majority 
of the capital, our own Bank keeping a 'substantial minority. The 
proposal would allow the continuity, in a new legal form, of our 
banking business in Turkey, which is now more"xban a hundred 
years old. At this moment I have to advise you that these tails, 
which have made favourable progress, have not yet reached a 
definite conclusion. 

HOTEL COMPANY 

The first full year’s management of the Hotel by the local affiliate 
of Wagon-Lits International has been most encouraging. Further- 
more, the Hotel Company has been awarded judgement in the 
arbitration proceedings against the Intercontinental Hotel Group, 
now a subsidiary of the Grand Metropolitan Group, for their 
breach of the lease agreement. The Intercontinental Hotel Group . 
have not seen fit to honour the arbitration award, and we have 
been obliged to commence legal proceedings against them. 

SOCIETE NOUVELLE DE LA BANQUE 
DE SYRIE ET DU LIBAN 

In the very difficult conditions caused by the continuing unrest in 
die Lebanon, the Societe Nouvelte de la Banque da Syrie et du 


Liban. of which we own a third, has had a satisfactory year. The 
Balance Sheet rose by 34% last year and totalled U_ 1.4 billion at 
31st December 1981. The net profit after, tax amounted to 
LL 11 million against LL 8.4 million in 198a In view of the 
uncertainties prevailing in Lebanon, no dividend will be paid. 

IRAN 

There has been no progress towards compensation for our share- 
holding in the nationalised Bank of Tehran. The Committee 
continues to do all that it can to ascertain the possibility of our 
receiving the compensation due. 

PLAGEFIN 

For Plagefin, which as is known is a wholly owned subsidiary 
managing snares and bonds, last year’s results were adversely 
affected by the foil in bond prices and by the rise of the US. Dollar, 
which reduced the Dollar value of the income received by Plagefin 
in other currencies. The operations carried out by Adoxa only 
had a very slight impact on the results, as the Company did not 
start business until the end of the year. 

BALANCE SHEET 

The Balance Sheet total. £363 million, shows an increase of 
£114 million over last year’s figure, whiih results from a very 
noticeable growth in the activities of our branches in Turkey, in 
spite of a further depredation of about 16% in the value of the 
Turkish Lira. 


PROFIT AND LOSS ACCOUNT 

After providing for tax and constituting necessary provisions out of 
reserves, the profit for the year amounted to 
£3.735/457, an increase of 54% over the 1980 figure, almost entirely 
the result of the development of our- branches in Turkey. We 
have passed TL 291.981,125 (£1,166,758) to local reserves in Turkey 
— • against TL 275.662,863 (£131 1,931) in 1980 — in order to comply 
with local requirements, and have received a transfer of profit 
amounting to £1.645,000 compared to £606.971 the previous year. 

The profits earned outside Turkey have risen slightly, the continued 
high interest raxes during the year for short term deposits and the 
strengthening of the Dollar against Sterling having compensated for 
the unfavourable effect which the weakness of the markets had on 
the results of Plagefin. 

After bringing into account the 1980 Turkish profits of £606.971 
received in 1981. the Accounts at end 1981 show an amount 
available of £2,578.231 including £27,924 brought forward from' 
1980. The ever increasing uncertainties -'in the International 
situation require us to make a substantial transfer to reserves 
again this year and the Committee has. decided to fix at £350,000 
the amount to be so transferred. 

From the remaining amount the Committee recommend distribution 
of £4 per share before tax. against £375 last year, payable in 
Istanbul, London and Paris on 18th June . 1982. If .this proposal 
is accepted, then, in conformity with Article 40 of the Statutes, 
a sum of £97.77? will be distributed to the holders of Founders’ 
shares at the rate of £450.10 per share before tax, payable on the 
same date and in the same pieces as die dividend proposed, and 
£77771 to the Committee, leaving £33,787 to be carried forward 
to the. current year. 


Copies of the Report and Accounts will be obtainable from: . 

The Secretary, Ottoman Bank Representative Office, 2/3 Phifpot Lane, London EC3M 8AQ 



Presenting 

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beautiful satinfinfeh is 
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SINCE 1B4S 
C0BCaiDESnSEriiniMJBEDRWC9S& 
7EtLUT0Sp582)4227SS 



fee sector are down by over a 
third from those levels, a mas- 
sive "drop when inflation is 
considered, to under. £Xm a 
year ._ . .; ' _• 

Yet” fee group’s total bfltings 
were £2Bm last year and are 
currently running at £3 ,5m. 
Clients . include Pedigree Pet 
Foods, fee computer company 
Systime, Harrington Caravans 
and fee airline Genair, as well 
as ten local authorities and four 
area health authorities. Affilia- 
tion arrangements with fee TLS. 
agency Bertrand Advertising 
provide an American and Euro- 
pean network for international 
marketing, a -ratal requirement 
when promoting industr ial 
devtiopment. 

Specific campaigns have in- 
cluded pet products such as 
Aquarian fife foods. Mealtime, 
Rewards and MarTObone, Sys- 
time ’s 500 series iff medium- 
sized computers, and fee re- 
launch of Liverpool’s morning 
paper, fee Daily Post, as a tab- 
loid. JBCA also handled liver- 
pool liberals’ paid-for election 
advertising la^; month, using 
fireesfaeet to gat fee message 
into every home. • 

Clarke is looking far other 


ways to maintain growth by ex- 
panding services for existing and 
new clients. He is already 
setting , up a media relations 
arm and sees a. growing need 
tor reerttitinent consultancy, of 
which advertising is just a part, 
He Is also .co-ordinating moves 
to “ twin ” Merseyside’s leading 
companies and local government 
-and other institutions with 
counterparts in California to 


help promote industrial develop- 
ment through M goodwill, fran- 
ichfaang, Keenans and affilia- 
tions.” He sees Britain : as 
America’s gateway to Europe, 
and therefore, as a major attrac- 
tion tor Inward investment.. . 

What he .doesn’t see is this 
spread of - . ’interest beyond 
advertising’s specialised rote as 
a diversion; Rather, he says, 
it is a wider* but proper identi- 
fication of client and. end- 
user needs. "... • 

Ian Hamilto n Fazey 


notice to the eoldcts of 

YAMA NOUCH I 
PHARMACEUTICAL 
CO„LTD. • 


cskcokvebtibiedbbsrtcxbs 

DUE DECEMBERS 1.1896 
Pursuant to Section 3.05 of the Com- 
pany's I nde n ture - d a ted as of~ August 3, 
1981 refotinxtoltofeove-mentioMdDe- 
bentnres, notice is hereby given as 
follow* 

1. On Anil % 1982 tin Board of Di- 
rectors of the Company resolved to makes 
free distribution of shares of its Common 
Stock to shareholders ofreoord ns of June 
SO, 1982 in Japan (Jane 29 in New York 
Ci^^att herai e of IV? new shares for each 

2. Aceerdregtethe eoametioa price it 
which the above-mentioned Debentures 

wivheaHiTwlHl hitorinMCiifPjiiin’iMi» 

Stock of the Company will be adjusted 
effective immediately after such record 
dote. The conversion price in effect prior 
to such adjustment »s Ten 1^3220 per 
.share of Common Stock, sod the adJrated 
conversion price trill beTen3U3&60per 

nnWTIVIlKYf «hWtt 


Dated: Junelft 1982 


CHANGING MANUFACTURING 
STRATEGY IN THE WEST 
THE KEY TO BEATING JAPAN 

ROYAL GARDEN HOTS, KENSINGTON, LONDON, WB, 
TUESDAY, 6th JULY, 1981- V • 

This one-day conference is' organised as a sequel to a weft-attended 
seminar on Japanese Productivity held in London last year. The 
conference aims to present .European managers in manufacturing 
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can be ' successfully exploited in the' western industrial scene. 

Speakers are drawn from .European organisations experienced In 
applying lessons learnt from Japanese industry. 

The topics to be covered indude: 

— Manufacturing Strategy — re-thin king strategy " to achieve 
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stance. • . • 

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and manufacturing . plant configuration . for . productivity and 
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• COVEttNIHEITT OF HEW ZEALAND 
JtEoeI,1982L ' -* 




V 


Record Review 

. Max Loppert 


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Verdi: la travtota, .Scotto, 
Kraus, Broson . • ete./Phflhar* 
monia, : Ambrosian Opera 
Choros/MutU EMI SLS 5240 <3 
records) : .' . 

Verdi: La . travlata. "Masters on,, 
Brecknock, Du Flessis eic./ENO ; 
Chorus '•'and ■ Orchestra/ 
Mackerras. EMI SLS .5216 (2 
records).- Recorded; in associa- 
tion with the Peter Moores 
FoxmdaiiofL..- . 

The -Art .of Victoria de Ids 
Angefes^-dpera, -song, ' and 
zarzuela, recordings, 1949-69. 
EMI SLS i 5233 (3 records) 

Handel & Mozart Arias.. De los 
Angeles / XSO / Boult, Golds- 
brough O rcbestra/ G oldsbrough. 
EMI ASD..4I93 - 
Elisabeth SehwankopE — The 
Early Tears.- ^Opera, operetta, 
and -' song recordings, 1946-55. 
EMI .RL5 763' (4 records) 

Two more Traviatiia. Let the 
business of this notice be not 
the "• lamenting, with Arthur 
Jacobs in the January Opera, 
the failure of the record in- 
dustry to fill such gaps as 
Alcente with Janet Baker 
“while the torrent of Toscas 
and TtgvUuos tumbles on ": but 
rather to outline in summary 
the virtues and defects of the 
latest two of the latter opera — 
whose ideal gramophone version 
has proved strangely elusive 
despite the ' multiplicity of 
choice. The EMI Troviotas are, 
in fact, neatly complementary — 
Muti _ conducting a trio of 
eminent Latins, Mackerras lead- 
ing an English-language ENO 
version (souvenir of the com- 
pany's successful and beautiful 
production). If a computer of 
artistic sensibilities could be 
engaged to combine the two, 
mixing the virtues and wiping 
the defects^ a truly Verdian per- 
formance might emerge. 

With crude brevity, I would 
say • that the plusses of the 
original-language recording are 
the leading men, the minusses 
the conductor and heroine. Thi* 
will not be, indeed has not been, 
an. opinion widely shared. 


Traviata— the swings 
and the roundabouts 


Muti's nervous intensity, the 
relentless insistence that makes 
hiin drive unswerving through 
the Act 2. finale (intentionally., 
not permitting Violetta’s three 
heartfelt pleas their momeot-of 
graded expansion), the slam- 
bang- chordal punctuation (one 
half expect Valhalla's rainbow 
to burst across the room at.the 
end of'“"Amami, Alfredo”) — 
all this has been acclaimed. 
Of the conductor's gift for draw- 
ing limber, luminous orchestral 
ensemble, of the sincerity and 
consideration underlying - his 


ness of- bass range. The opera 
is complete in some passages, a 
doubtful beiufit. 

On the vernacular, set, the 
opera is trimmed to fill two 
records; the sound balance is 
admirable. Mackerras and 
Mast arson supply what Muti and 
-Scdtto lack, the conductor, 
energy but also expansiveness 
of moulding, energy that does 
not lack delicacy; the soprano, 
a pure, limpid line, effortlessly 
natural and sensitive to changes 
of mood, at just those points 
where Scotto squeals or “in- 


Four great sopranos sing Violetta in new 
recordings and revivals 


decisions, there can be, as ever, 
no doubt. But what- about 
Verdian style? 

Scotto’s Violetta sounds worn 
—the singer rather than the 
character. Even in middie-range 
areas, formerly the singer's 
special glory, the timbre is now 
hollow. The top screeches otit 
Much fine, careful shaping of 
phrases marks the vocal acting, 
yet even; here, where compen- 
sations might be expected for 
the discomforts of the singing 
qua singing, it seems to me that 
artiness, a determination to im- 
press the listener with the 
eloquence of every inflection, 
interposes. (A hearing of the 
1962 Scotto Traviata affords a 
sad instruction.) Kraus, in pin- 
point form, defying the years, 
and Broson, a severely magnifi- 
cent Germont father as he has 
been at Covent Garden, must be 
heard. The digital recording 
combines in the worst way arti- 
ficiality of balance and boomi- 


flects.” (But is Miss Masterson 
really a Violetta? Should not 
the Peter Moores Foundation 
have gone for her Massenet 
Manon, and here given us 
Josephine Barstow?) The men, 
Brecknock and Du Plessis, are 
decent but rather more “locaL" 
And Edmund Tracey’s transla- 
tion, just bearable at the 
Coliseum, proves all but in- 
tolerable on repeated home 
hearing — lines like '‘So trust 
in your emotion/We still can 
hope and dream” are the stuff 
of pulp romance. 

At the end of Schwarzkopf's 
great career, and at the late 
twilight stage of De los 
Angeles's, EMI is putting 
together retrospective testi- 
monies to the magnitude of their 
art. The 1959 De los Angeles 
Violetta, unsophisticated (and 
occassionaJly uneasy in high 
phrases), remains one of those I 
rate most highly; by “Addio del 
passato,” despite the excessively 


treraolando letter-reading, it is 
here worthily recollected, along 
with the majority of her roles. 
A rarity, the 1949 “Porgi amor' 1 
(the Mozart Countess was. her 
first operatic assignment), is 
one of tile treasures of an album 
otherwise mainly familiar but 
not therefore less rewarding- 
even as the vocal opulence and 
security thins across the two- 
decade span of its material, the 
“ soul ” of the singing shines 
out. A single record of Handel 
and Mozart items, almost all pre- 
viously unpublished, makes an 
even more compulsive acquisi- 
tion. £n sochtihings as Exsnltate, 
jubilate or Cleopatra's “V’adoro, 
pupille,” we might now desire a 
more variously dramatic impulse 
behind the music; yet beauty of 
sound and mus Irian ly distinction 
are synonymous. 

While Schwarzkopf sang 
Violetta quite often (she was 
Covent Garden's first postwar 
incumbent), her scrupulous 1950 
“Addio del passato " (no recita- 
tive, two verses) must inevit- 
ably be reckoned no more than 
a marginal entry in the main 
account of her operatic reper- 
tory. The four records of this 
album leave, in total, no doubt, 
that this was one of our cen- 
tury's major musical talents. 
Even for the listener who 
comes to them, as I did, with 
a Schwarzkopf problem ” well- 
rehearsed and ready to flare, the 
sheer distinction and thorough- 
ness of her singing compel 
fascinated semi-surrender, es- 
pecially when the voice is so 
often beard in its lustrous 
estate of youth. And for all the 
items — 4he dainty Rosenkavalier 
and H&nsel duets with Seefried, 
the Strauss lieder, Brahms’s 
“Vergebliches Standchen” when 
set beside De los Angeles' — 
bedizened with interpretative 
artifice, there is a handsome 
sufficiency here of other per- 
formances to which Schwarz- 
kopf’s intricately detailing 
methods seem ‘entirely appro- 
priate. 


Arrau/Festival Hall 


Dominic Gill 


Second Stride/Riverside Studios 

Clement Crisp 


si 1 ** 


. Last year I wrote on several 
occasions about' Claudio Arrau, 
and of the- extraordinary sense 
of renewal and rejuvenation in 
the playing of this great pianist 
as he approaches his 80th year. 
There bad been a time, in the 
29605 and mid-297Ds, when it 
seemed, that the artist one had 
known, and loved (chiefly in toy 
Case from the Records of the 
’forties' and ’fifties? was about 
to vanish entirely under the 
swell of a great wave of lugu- 
brious, laborious, pedantic key- 
board manners. But more 
recently, Arrau has returned on . 
the crest- of ' the wave, tri- 
umphant'. His Festival Hall 
recital 'last autumn in par- 
ticular was a marvel of vitality, 
authority and serenity: not so 
much a transformation as a 
vindication, a powerful link, 
between past and present. 

By his own highest -standards, 
Arrau's -recital ; on Tuesday 
evening was not a vintage 
event. Some of the laboured 
rubati, all trace of which by 
last year had disappeared, have 
returned. His Liszt sonata was 
grandly impressive in its archi- 
tectural span: hut page upon 
page of it was weighed down, 
by the same phrase-end (some- 
times even mid-phrase) hesi- 
tation, endlessly repeated, and 
eventually predictable. The 
performance which opened the 
evening, of Beethoven’s “ Les 
Adieux” sonata op.Sla,' was 
more of a serious play-through 
than a finished interpretation, 
full of passing magical things, 
but tentative, a testing of the 
air. 

Of Beethoven’s Appassionato 


Arrau allowed no more than a 
swirling, impressionistic view: 
fierce eddies of colour, dark 
shadows, sudden flecks of bril- 
liant light. Like his account 
which followed of Liszt’s Dante 
Sonata, it was magnificent of 
its kind: although ideally both 
scores deserve (and at rimes 1 
unequivocally demand) "far 
sharper focus and crisper dram- 1 
atie articulation. We contented 
ourselves -with stepping back 
to observe -the music, with the 
performer, from a distance — • 
the broad movement, broad 
argument, was monumental, 
even where the fine detail was 
blurred. 

Saleroom 

Sotheby’s sale of Old Master 
paintings yesterday totalled 
£261,679 with 21 per cent bought 
in, about average for a sale of 
(his kind. The top lot, “ Orpheus 
charming ithe beasts ” by a fol- 
lower of Jan Brueghea, failed to 
find a buyer, but a -Pieter 
Casteels of fowl ah (the garden 
of a villa trebled its estimate at 
£15490 and a view of Hemficsem 
Castle also beat its forecast at 
£10,450. 

..The oth.ee 4qp prices were the 
£10,340 for a pair of river Land- 
scapes by Christian Schulz, 
double the estimate, and -the 
£9,020 for a wooded landscape 
by Anton Mixon. 

On . July 16 Christie’s is hold- 
ing one of the. most important 
sales of English pictures for 
some time with a Turner "The 
Temple of Jupiter PaneUemus 
restored ” which is one of the 
artist’s lost works, unseen kx 
public since 1876. 


Second Stride is an amalgam- 
ation of the small dance 
troupes working With Ian 
Spink and Siobhan Davies, and 
its '= season at Riverside this 
week provides an occasion to 
see tile work of both these lead- 
ing . Contemporary choreo- 
graphers. and also two pieces 
,by Richard Alston. At their 
best ail three creators' propose 
a cool, dance-for-dance’s-sake, 
manner whose excitements are 
physical as well as intellectual. 
At its most arid, in Ian Spink’s 
Canta which began Tuesday’s 
opening performance, we see 
■ something like -the Rubik Cube 
style of postenodem creativity, 
with a series of switches in 
small blocks, of movement 
going on and on and on',, gulte 
as relentlessly as the. awful 
accompaniment produced by 
David Cunningham's assembly 
to tape loops mid phased sound. 

There are rewaixis.in Spink's 
dances — the. way the cast of six 
establish little' curls of energy, 
territories into which they 
move, contacts which break and 
re-foam — but . -the . androgynous 
outfits (dreary slacks and shirts 
for men and women) and the 
restrained language leave one 
dry-mouthed. Far more stimu- 
lating the second Spink work. 
There is novther woman, set to 
Stravinsky's 1925 Serenade and 
the 1924 sonata, both well 
played by . Susan Bradshaw. 
Androgynous outfits again— but 
pretty ones in blue and white — 
with the title explained by only 
one girl wearing a dress, and 
fresher and more demanding 
sequences of movement which 
develop into a most impressive 


Gerard Murphy as Prince 
Hal and Patrick Stewart 
as Henry IV in Henry IV 
Part Two, which, -pre- 
ceded by Part One, offi- . 
cially. opened the. Royal 
Shakespeare Company’s 
tenure of the new Barbi- 
can theatre in the City of 
London last . night. 

Michael Coveney will 
review both parts on this 
page tomorrow. Tonight 
the Pit, the. studio 
theatre at the Barbican, 
has its critical opening 
with a performance of 
Our Friends in the North, 
a play about corruption 
in local government 



La clemenza di Tito/Covent Garden 

Max Loppert 


Newcomers 
excel in 
Mozart revival 

The beautiful Covent Garden 
Titus, not given here for six long 
years, returns in good, not abso- 
lutely polished, form with a new 
conductor and a cast that is. 
with one exception, entirely 
changed. What a pleasure, after 
less securely styled encounters 
with Mozart and Gluck serious 
operas, in this house and others, 
to see once again Anthony 
Besch's grandly simple produc- 
tion. unfashionably straight- 
forward without ever declining 
into mere convention, and John 
Stoddart’s scenes and costumes, 
which capture in tones of 
Mediterranean warmth the fire 
and severity of Poussin. In all 
of this, the peculiar, too-long- 
misconstrued character of the 
opera is acutely apprehended. 
The production is currently in 


the 1 care of Richard Gregson. by 
whom on Tuesday not every line 
had been tautly drawn: from a 
stalls side-aisle seat, much of the 
Emperor's first -entrance was 
obscured. 

Jeffrey Tate, not ao long ago 
.a member of the Royal Opera 
music staff, makes a delayed 
conducting debut A burnish on 
and a balance of the orchestral 
tone immediately revealed the 
presence in the pit of a keen 
musical intelligence; the figura- 
tion of the score sounded lithe, 
never mechanical, the colours 
sombrely various, never frigid. 
On a hot evening in the house, 
it seemed that Mr Tate had yet 
to establish a longer view of the 
acts — tension was apt to drop, 
especially during the long 
sequence of increasingly rich 
and character-revealing airs that 
make up the second. A notable 
debut all the same. 

And in Viteilia, a notable first 
Covent Garden Mozart role for 
Elizabeth Connell. Succeeding 
Janet Baker must always be an 


unenviable task, yet Miss Con- 
nell’s powerful, colourful, ex- 
citingly dramatic performance 
outlined a quite different 
approach to the great role — less 
classically taut of line, perhaps, 
and in the fine detail of acting 
less disciplined, but no less a 
focus of the drama. The full 
compass of the music, from G 
below the stave to a D above it 
cleanly thrown out. was the 
singer's to command. On this 
form, and controlled by firm 
directorial guidance, there 
seems no reason why Miss 
Connell should not now tackle 
the highest dramatic soprano 
peaks of 18th-century opera — 
Gluck's Alcestis and Armida, 
Mozart's Electra and Anna. 

Vi tell to and Annins, another 
more than promising perform- 
ance by Diana Montague, were 
the vital presences, the “real 
people,” on stage. There was 
vitality in more intermittent 
supply from Yvonne Kenny 
(Servilia), John Tomlinson as 


Publius (strong bass tone need- 
ing a- cleaner line), and, in the 
difficult title role, from the 
handsome Swedish tenor GBsta 
Winbergh — was it simply ner- 
vousness that kept him from 
taking the prize of Mozartian 
manly warmth that should by 
right be his? 

Intonations! exactitude. In a 
clammy auditorium, is a 
familiar casualty, and most of 
the cast were prey to passing 
vagaries; alarming, though, that 
Yvonne Minton, sole survivor of 
the original cast, should have 
strayed from true so widely and 
so frequently. Towards the end 
of the evening Miss Minton's 
Sextus began to recover some- 
thing of its celebrated lustre 
and richness. . That Racine's 
Berenice and Mozart’s Titus, 
contiguous episodes of the same 
tale, should be on in London at 
the same time is .a most agree- 
able coincidence. 


series of duets and inter- 
changes in the sonata’s last two 
movements. Exceptional here 
tiie dancing of Philippe 
Giraudeau and Matthew 
Hawkins in a linear, ' very 
“classical” section. 

Richard Alston’s The Field 
of. Mustard, on which I have 
reported before, also turned up 
in the first programme. It is 
inspired by an A. E, Coppard 
story, and is set to Vaughan 
Williams’ tweedy English Folk 
Song studies for ’cello and 
piano. It features Siobhan 
Davies and Juliet Fisher as two 
women involved in a dose 
emotional relationship, though 
I do not think that the well of 
loneliness is anywhere in sight. 
It is- earnest, well danced, well 
crafted, and I find its -hand- 
knitted manner all too 

resistible. 

The programme ends • in 
jolliest fashion with Siobhan 
Davies’ '"Carnival (of the 

Animals). There is a charming 
back-drop of curtains parting to 
reveal Saint - Safins in a 
Douanier Rousseau jungle, and 
the entire company are 

variously in and out of cream 
suits, bright scarves and shirts 
and animal impersonations. 
Sometimes the animals are just 
animals; at others Miss Davies 
has her own jokes, as when she 
and Ian Spink trail in . as a 
geriatric couple to ’Tortoises,” 
and Philippe Giraudeau is a 
plaintive lover whose automatic 
hand-to-heart appeals to the 
elegant Juliet Fisher coincide 
with the repeated notes -of the 
cuckoo. 


A Personal Affair/Globe 


Michael Coveney 



However paradoxical it might 
sound, buggery in high places 
is the subject of scandal and 
concern in Ian Curteis’s first 
stage play, which has been, 
do nig the rounds since its 
Guildford premifere last April. 

Mr Curteis, of course is re- 
nowned for such solid TV 
reconstruction jobs as Churchill 
and the Generals and Suez 1956. 
A Personal Affair is set in the 
middle 1930s between two State 
Openings of Parliament and, a 
programme note informs us, 
inspired by an incident which 
forced Lord Beaumont to resign' 
as leader of the Liberal Party 
in the House of Lords. 

Most playgoers under the age 
of 150, however, would recog- 
nise the play as a competent 
relation of Croton Matrimonial 
that, despite obvious echoes of 

the Jeremy Thorpe /Norman 
Scott case, could have been 
washed up like a message, in., 
a' bottle on the shore of Shaftes- 
bury Avenue at any time in the 
past 15 years. 

Gerald Harper plays Arthur 
St Neots, the Earl Buchanan, 
MC, as an honourable smoothie 
faced with the -unenviable task 
of coping (in two big scenes) 
with his loyal wife's (Virginia 
McKenna) enquiries as to what 
it was he actually got up to 
with bis young fancy hoy in 
Ladbroke Grove. His brother-iit 
law, Percy, the Duke of Middle- 
sex (James Grout), initiates a 
moralistic purge that drives him 
to Venice and out of office. 


King George V (William Fox) 
calls by to advocate discretion 
— he has to live with the homo- 
sexual practices of sundry Privy 
Counsellors — and to announce 
that the- young man has shot 
himself. “I loved him,” croons 
Mr Harper, slipping convinc- 
ingly from matinee idol manner- 
ism to emotional outburst 
James Roos e-Evans’s produc- 
tion is immensely skilful in its 
way, abetted by the handsome 
designs of Peter Rice. But the 
dramatic air is thick with snob- 
bism and a sort of outmoded 
sentimentality that is inexcus- 
able even in so calculated a 
period piece. 


Radio awards for 
Pinter and Barnes .. 

•’ Harold Pinter and Peter 
Barnes are among six play- 
wrights who have won Giles 
Cooper Awards for the best BBC 
radio plays of 1981. 

Peter Barnes won his award 
for The Jumping Mimuses of 
Byzantium, a monologue per- 
formed by John Clements on 
Radio Three. Harold Pinter’s 
award was ' for Family Voices. 
starring Peggy Ashcroft, 
Michael Kitchen and Mark Dig- 
nam, the first of a series of pro- 
ductions broadcast by the BBC 
in association with the National 

Theatre. 


Leonard Butt 


Virginia McKenna and Gerald Harper 


.. \£ 

- i 

s ' 



KOVAL COURT. .S .CC 730 1743. hn 
3.0. Sit m>t 4.0, Man Evj» & Art- 
Mat ill lean, «. MOT OUlft J«*0- 
SALEM bv PmI Ksmber. Mart end JswS 
Snon Callow in BUILDING TM PARTY 

S Clive Morriion Retained Reading Son 
June 7>30 pm. 


■OTAL unm inuint unblAllui. 

720 2554. Ol FOR INCLANO br Trevor 
Griffiths. Eva* 7.30. All Seat! £2. 

SADLER'S WELLS THEATRE EC1. CC 278 
■913 (5 lineal. Grp sale. 379 6061. 
24 hr Instantly confirmed res. 200 0200 
AUSTRALIAN DANCE THEATRE 
From Tim to 26 June, Eves 7.30, Sat 
Mat 2.30. 

3rd Dance Subscription now open. Rina 
01-278 0S55 (24 Hry for brochure. 

AMPLE FREE PARKING after 6.30 pm. 

SAVOY. S OT-OJ6 8888. CC S30 0731. 
E<mnlD«s 7.45. Mats Wed 2.30. Sat 
5.0. B.30. MICHAEL FRAYN’S NEW 
COMEDY noises OFF. Directed bv 
MICHAEL BLAKEMORE. 

ST. GEORGE'S SHAKESPEAREAN TH. 
01-E07 1128. Perfs 7 JO pm. TWELFTH 
NIGHT In re pertoi re. Jane- 3, 4, S, IV ft 
12 with MACBETH June 10. 17 4 >8. 



VAUDEVILLE. CC 01-833 9988, Em V.' 
Wed mats 2.45. Sats 5 & 8. GORDON 
JACKSON In AGATHA CHRISTIE'S 
CARDS ON THE TABLE. Fully air 
conditioned theatre. 



at 7.30 tun. Mat Wed & S»t 

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01-828 473S-6. Evftf 7.30. Mata Wed 
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meats anil this w eek. ELIZA turn 

TAYLOR in THE LITTLE FOXES by 
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WESTMINSTER. CC 834 0283- HANNAH 4 
GORDON, GWEN WATFORD, PADL - 
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fnsy "rlsf 1 wn V a3g 2 

raybftUiii; 3 

a t 4.30 fi 8.00. Wed nut 2 JO. Record- 

“4?“ 4 

Blakemore. Air condltktnlna. rVH 1 


F.T. CROSSWORD 
PUZZLE No. 4,893 

ACROSS 

1 The trouble about a Spaniard 
is he puts pleasure before 
work (8) 

5 Steps 'up air travel (6) 

9 Made someone take notice? 
( 8 ) 

10 He has a cool basis for his 
figuring (6) 

12 One doesn’t run after It, pre- 
sumably (4, 5) 

13 Petal sbaped fold (5) 

14 Port area (4) 

16 and 21 down: Extraordinary 
' impression produced by jour- 
nalists (7, 7) 

19 Rise for the workers? (34) 

21 The way. to travel to gain 
time (4) 

24 Fight to protect one’s pro- 
perty? (5) 

25 About sixteen at church— 
. . miserable, living (9) 

27 Perfume -sent back, to many 
it J s not acceptable (6) 

28 Class of good scholars (S) 1 

29 They were In the church’s in- 
terest (6). 

30 Full beneath the waves. '(8>; 

■ DOWN 

1 Novelist about fifty? Not 
qjuite (6) 

2 Stop in a crooked side street 
(6) 

3 Fall behind it at the end jof 
the day, (5) 

- 4 Evidence of a leak? Tell the 

u attendant (7). 


15 16 I 171 18 




120 H21 


122 Hfl23 


6 Mere versifiers (4, 5) 

' 7 Harvest- the grain In a new 
way (6, 2) 

8 Choke— or another carburet- 
tor control (8) 

11 The aims of termini ( 4 ) 

15 Part of the tide of lawless- 
ness? (5, 4) - 

17 Position of' respect on the 
staff (44) 

18 Is noticeably not flush? (5, 3) 

20 The song told a story (4) 

21 See 16 across - 

22 Is ecstatic being a- new parent 
(6) ' ' 

23 Give notice (6)' 


26 No, no not here! (5)' 
Solution to Puzzle No. 4,892 


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FINAACJAI.il MIS 


STEEL IMPORTS 


BRACKEN HOUSE,: CANNON STREET, LONDON EC4P 48Y 
Telegrams; Finantimo, London PS4. Telex: 8954871 
Telephone: 01-2488000 


Why the U.S. is 


Thursday June 10 1982 


New rules 
on insolvency 


By Richard Lambert in New York 


WHEN THE Conservative 
Government came to power in 
1979 the then Industry Secre- 
tary. Sir Keith Joseph, was 
wont in private to extol the 
virtues of Receivership There 
was, he felt, loo little of it 
around. Sir Keith has since 
moved on to other things and 
the recession has deepened. 
Paradoxically, however, few 
quoted companies have so far 
gone under. Those that have 
collapsed have not been large, 
although some, tike Sione-Platt. 
Laker, and De Lorean, have 
gone down noisily. 

One reason for the apparent 
durability of big companies in 
the face of the worst recession 
rince the 1930s is that increas- 
ing industrial concentration 
has turned the Receiver and 
manager's job over to the 
hatchet man from the parent 
company. 


Intensive care 


Another is that governments 
are reluctant, since the collapse 
of .Rolls-Royce in 1971. to con- 
templaie receivership for the 
really big incipient lame ducks. 
Serious cases now go into in- 
tensive care, a process whereby 
the Bank of England acts as 
honest broker in an attempt to 
ensure that conflicts between 
the interests of different 
credilors, and between credi- 
tors. shareholders and the com- 
pany. are not allowed need- 
lessly t» jeopardise the com- 
pany. The company is then 
restructured by (often 
revamped) management. The 
question is whether the line has 
. been properly drawn between 
the need for financial discipline 
and rapid industrial adjust- 
ment, and the need to avoid 
social upheaval that may have 
been • acceptable to the 
Viclorians who drafted most of 
Britain's insolvency laws, but 
is no longer acceptable today. 

.The report of Sir Kenneth 
Cork's committee on insolvency 
law appears, at first sight, to 
side implicitly with those who 
feel that companies should not 
go down before all hands have 
exhausted themselves at the 
pump. The committee accepts 
that the uniquely British and 
much-criticised system of 
floating charges, which do not 
attach to any specific asset but 
“crystallise” on all the charged 
assets at the lime of default, 
is unsatisfactory: too often the 
bank makes off with the spoils 
at the expense of unsecured 
non-preferential creditors. 

To remedy the inequity the 
report proposes that fewer 
creditors should have preferen- 


tial status and that 10 per cent 
of the net proceeds of the assets 
realised — a curiously arbitrary 
figure that the report makes no 
attempt to justify — should be 
set aside for unsecured 
creditors. 

But despite these misgivings 
the committee believes that the 
floating charge can be highly 
effective. Certainly the alterna- 
tives are unattractive. A 
voluntary moratorium is not 
binding on all creditors and 
can thus be sabotaged too 
easily; a scheme of arrangement 
does bind creditors, but takes so 
long to reach the court that 
dissident creditors can pre-empt 
it, for example by seizing assets. 

The committee, no doubt with 
the American Chapter 11 bank- 
ruptcy procedure partly in 
mind, therefore proposes a 
new corporate fireman — an 
administrator who has all the 
powers of a receiver together 
with other powers designed to 
help keep firms afloat. The aim 
is to ensure that companies do 
not fail simply because they 
have raised one form of credit 
rather than another. 

In this, as in the sections of 
the report on personal bank- 
ruptcy, Cork aims to put order- 
liness and equity into insol- 
vency, to distinguish between the 
crooked and the incompetent. 
It was not part of his mandate 
to pontificate on wider issues 
such as the relationship between 
company and banker, although 
the banking system's concern 
should clearly be to monitor 
clients effectively enough to 
make intensive care or 
receivership unnecessary where 
possible. 


Reforms 


The overall balance between 
financial discipline and social 
concern might not, then, be 
greatly changed by these. pro- 
posals. They . are detailed, 
practical reforms ‘ of the kind 
one would expect from a com- 
mittee headed by the most 
effective recent practitioner in 
insolvency a ad the approach 
recognises that the receiver, 
administrator or liquidator has 
a crucial role to play in the 
financial and industrial struc- 
ture which should he conducted 
in a humane legal framework. i 
It would be unfortunate if an 
obvious lack of vote winning 
appeal, together with a call for 
many of the Inland Revenue’s 
preferential claims to be 
dropped., were to result in the 
report being lost from sight in 
Whitehall 


Holding Chad 
together 


T HIS IS a big day both for 
the , world’s steel, industry 
and the international trade 
co mmunit y. . Short of gome last- 
minute compromise, the U.S. 
Department of Commerce is due 
to publish rulings that could 
have major rep e reus ions on 
trade in steel and on Europe’s 
business relationship with the 
U.S. \ 

1 The issues Involved are so 
serious that even at this late 
Stage the Reagan Administra- 
tion is still battling to find a 
political solution. 

But an eleventh-hour agree- 
ment to limit imports on a 
voluntary basis would be 
unlikely to provide a lasting 
solution to the problem. This 
week’s events form a key step 
in a process which started 
earlier this year -when the U.S. 
steel companies fired a barrage 
of complaints against foreign 
steel importers, mainly from 
the European Economic Com- 
munity. 

U.S. producers alleged that 
their home market was being 
murdered by soaring volumes 
of unfairly priced ' products- 
from abroad. They claimed that 
foreign steel makers, especially 
European companies .were being 
subsidised in order" to protect 
empioymenL As a result, they 
were able to export their 
products to the U.S. at un- 
realistically low prices. In some 
cases. dumping has been 
alleged as weiL 
Some of the original charges 
have since been dropped. But 
85 cases are still - being 
examined, which, according to 
the American Iron and Steel 
Institute, cover same 40 per 
cent of all U.S. steel imports. 
Of these, the most important 
both in terms of quantity and 
of general principle concern the 
subsidy allegations, and ft is 
on these that the Commerce 
Department is due to issue its 
preliminary findings today. 

Should the Department find 
that the U.S. industry 3 * claims 
are justified — . and it is gen- 
erally assumed that at least 
some of the cases wiH be made 
to stand up — importers will 
have immediately to post either 
a cash deposit or a bond equal 
tn the estimated amount of 
subsidy on the- product in 
question. In certain circum- 
stances. this penalty could be 
made retroactive to cover steel 
brought-in up to 90 days before 
today’s deadline. 

If today’s decision is affirma- 
tive. it will be subject to final 
confirmation by the Department 
and to an investigation toy the 
International Trade Commis- 
sion. an independent U.S. body 
which would have to decide 
whether the U.S. industry had 
been damaged by subsidised 
imports. 

So there is still time for 
brinkmanship. But the impact 
of today’s findings will spread 
well beyond the steel industry. 
Common Market trade officials 
have already dropped heavy 
hints that . harsh U.S. action 


against steel imports could 
provoke retaliation in -other 
areas of trade. 

There axe wider issues, too. 
Gary Hcriick, who Ins been 
supervising the investigation at 
the Commerce Department, says- 
that ithe findings will be of “tre- 
mendous importance n in tengsr 
of defining what constitutes a 
subsidy. 

There are obvious grey areas 
to be' clarified— such as the 
question of whether a steel-, 
maker using coal from a sub- 
sidised naming industry is itself 
being subsidised. Hbrlick .'be- 
lieves that other countries jare 
likely to follow the precedents 
set down today by the U.S.' 
authorities in what has been by 
far the biggest investigation of 
its type. 

However. Horiick also stresses 
that the investigation is per- 
fectly compatible with the in- 
ternational subsidies code laid 
down, under the Tokyo round 
trade agreements, and with the 
U.S. Trade Agreements Act of 
1979. • - 

These Issues have come to a 
bead as a result of a more or 
less unprecedented downturn in 
the U.S. steel industry. In the 
week ending June 5. the domes- 
tic .steel producers were operat- 
ing at 42.5 per cent of capacity, 
which ' is the' lowest point 
touched since 1938. Capacity 
utilisation so far <this year has 
run at 56.6 per cent, down from 
85.1 per cent a year ago. In 
terms of steel production, that 
represents a fall of about one- 
third. 

Not surprisingly, steel prices 
are exceptionally weak,' and 
there are reports that list 
prices are being discounted by 


20 pec cent or more. 'According 
to one importer, “You cannot 
speak of a : price structure. 
Everyone wants to have the last 
look at a deal to see if they 
can't match' ft” 

The collapse in prices is what 
killed the,: Trigger ' Price 
Mechanism, which was set up in 
1977, suspended early in 1980 
and brought back to life again 
later that same year. The U.S. 
authorities persuaded domestic 
steel producers not to press 
unfair trading actions against 
foreign importers; and in return 
.undertook to run a monitoring 
system based on a trigger price 
which ..was derived from 
Japanese steelmaking costs/ 

The trouble was that U.S. 
prices, jespedally for sheet steel, 
tumbled last year to below the 
trigger price, and an increasing 
volume of imports started to 
fiood in as the year progressed. 

In November, the Commerce 
Department itself initiated anti- 
dumping and subsidy investiga- 
tions against several countries, 
as it had promised that it would. 
But its actions were not nearly 
tough enough to satisfy the UJ5. 
companies. They fired off a 
much wider range of complaints 
this January— and- once again 
the trigger price mechanism was 
suspended. 

Since then, the steel com- 
panies have made it clear that 
they want blood- At a recent 
meeting in New York, William 
De Lancey. chairman of Republic 
Steel, complained that "We are 
engaged in an unequal struggle 
pitting private enterprise com- 
panies against European pro- 
ducers. which are either the 
alter ego of a foreign govern- 
ment or which enjoy substantial 



Blast furnaces which have, been idle since eariy-1980 afe demolished at ^ YbongStown*. -Ohio > 


government support.” Or, as 
David Roderick, chairman of 
U.S. Steel, put it less elegantly: 
u V/e are forced to trade in 
what amounts to a rigged game.” 

U.S. Steel has claimed that 
some European imports receive 
government subsidies worth 
between $50 and $300. a ton — 
compared with a selling price of 
only about $450 to $500. 

Members of the Reagan 
Administration, have been mak- 
ing politely sympathetic noises 
in the face of this attack. Steed 
presents a sharp doteshma to an 
administration wMcb has strong 
free market inclinations— yiet 
which may feel obliged to 
impose -a sweeping set of trade 
restrictions.' Malcolm Baldrige, 
Secretary of! Commerce, has 
stated firmly that. "this Admin- 
istration will not tolerate tbe 
shifting of foreign steel pro- 
ducers’ adjustment burdens to 
the United States through 
unfair trade practices”'. 

The U.S. companies say they 
will be happy to press their 
actions to the bitter end if 


necessary. They also threaten 
that if the present, trade laws 
do not work to their satisfac- 
tion, they will use their formid- 
able lobbying powers to per- 
suade Congress to write new 
ones. '' ' '• 

‘ However, the issue was nbt 
as cut and dried as it seems in 
Pittsburgh. . The fundamental 
problem of the U.S. steel indus- 
try. according to Charles Brad- 
ford of stockbrokers- Merrill 
Lynch, does not Steffi from 
Imports but from excessive 
costs and insufficient produc- 
tivity growth. . -■ . \ 

Department of Labour 'statis- 
tics support the importers claim 
that in many cases they are just 
a lot more efficient than the 
U.S. companies. In 1980, tile 
-latest figures available, unit 
labour costs in the Japanese 
steel industry were between 34 
and 41 per cent of those in the 
ILS. In France, the range was- 
between 84 and 91 per cent; in 
Germany, between 83 and 39 
per cent. Costs in the UK were 
higher than in the U.S., but its 


figures: 'were- distorted bjTjthh 
strike.."!,-. 


THE U.S. STEEL INDUSTRY 

- Total tteoi products (*000 tonnes) 


THE EUROPEAN RESPONSE 


1982 IQ 
. ZQ 
3Q 
' 4Q 
Total 


Estimated domestic 
consumption 
119,236 
117,040 
99.000 
104.700 
T09.05T 

mm 

17Z942 
101,942 
100.008 ~ 

' 2*601 
■ 23,200 • 
21,774 
2SJ7S 
94*850 


Bn ports 

."Consumption’ 


21,774 ■ 3.M0 15.16 

2SJ7S 4075 16.91 

94J50 16,000 16*7 

'can Iron A Steal(nrntute7 U^STDepsrtmenr of Commerce 

end Merrill Lynch 


1171 

JtM4~ 

~12Ti~ 

13.64 

17.70 

18*6 

15.51 

1500 

19.90 

204)2 

15.09 

15.16 

16.91 
1607 


EUROPEAN STEEL EXPORTS TO US. 



1971 

1979 

7980 

1981 

Belgium 

1^3* 

956 

870 

. 1,026 

Franc* 

1,759 

1341 

- 967 

1.123 

Wert Germany 

L295 

1,868 

1.289 

1.997 

Italy 

789 

' 292 

174 

670 

Netherlands 

686 

500 

340 

413 

UK 

672 

434 

• 237 

524 

Total 

7,464 

5^05 

' 3,887 

5,864 



Source: American Iron A Steel Institute 


EUROPEAN- steel producers 
are' putting a brave face on 
the threat of legal battles 
over. experts to tbe UB. 

■ ‘ Most have been hoping — 
even up to today — that an 
orderly marketing arrange- 
ment would be successfully 
negotiated with the U.S. Com- 
merce Department and the 
legal actions • would be 
withdrawn. 

Assuming negotiations do 
not succeed, producers are 
reluctant, to indicate -how 
they will react to counter- 
vailing duties until they see 
how large they are. . 

There is not ' only the . 
financial burden to be taken, 
into consideration “but also 
tbe question of whether any 
attempt to continue export- 
ing would be taken as an 
aggressive act exacerbating 
the sitnation- 

On the other hand, most 
European producers feel they- 
have strong cases to put 
against accusations of being 
unfairly subsidised. 

German producers, - who 
accounted for much of the 
increase in EEC exports to 
the tLS. last year, fiercely 
maintain that . they have - 


nothing to fear from an 
investigation. . 

French steel - industry 
.sources concede that -. they 
have been heavily subsidised 
but argue that subsidies have 
been aimed not at increasing 
capacity or reducing prices 
but at financing cutbacks and 
more than 50.008 redundan- 
cies since 1975. 


The total volume of exports 
of steel from EEC countries 
to' the U.SL, at 5.9m tonnes 
last year, is not large in com- 
parison with total EEC' pro- - 
Auction of roughly 125m 
tonnes. 


Similarly, for most; conn-: 
tries and companies in the 
EEC, U.S. sales are a small 
portion of -the - totaL 
Germany's U.S. sales pi 1.99m 
tonnes last year were less 
than 5 per cent of erode steel 
production.' - , 

. But -European industry 
leaders fear that if these 
tonnages. together with 
volumes from other countries 
under attack, can no longer 
be sold in the U.S., they could 
cause considerable disruption 
to steel markets in the Com- 
munity. 


The'stTengthof toeUjL_d»V : 
lar since then would make to- 
day’s figures look even: Jess 
flattering to the U.S; producers. 

I IS. - steelmakers “boast of 
their heavy, investment tn new 
plant, and promise that 4S_ per 
cent of their steel will be tirade 
by. modern continuous cast. pro- 
cess- by 1990. In 1980, 6ft\per 
cent of Japanese steel wasteoli- 
tinuously cast. . “ I 

The importers also: point, but 
that at least some ofiast year’s 
upsurge was brought- -about bj- 
tfae US. companies themselves. 
According to the Americahifi- 
stitute for Imported Steel: “US. 
Steel • and -Annco were ' tm&fle 
to meet customer demand ; fiv 
2981; and - therefore 'together 
ordered over 1 m- tons ofVoR- 
conritry pipe and tube front-for- 
eign .producers." . ■[' 

■ On ~a more defensive note, 
they also argue thaf : it. wodM 
be difficult. to prove that; subsi- 
dised imports are causing mat- 
erial-damage to the U;S; indus- 
try at a time when tile recession 
has brought about such a shaFp 
faO in demand. And they bug’ 
gest that if particular foreign 
producers .are squeezed out 
the' market by. the. imposition 
of eoimtervaUingi duties/ they - 
will quickly be replaced _ by 
other importers. - - ■ .. ."IV • 

This view ;is shared by Mer* 
rill ' Lynch's Charles Bradford, 
who suggests that 'the overall 
level of imported steel- might . 
not dedine r any more- *tinh 
would have been the case any- 
way without the anti-dumping 
and countervailing duty: rulings. 
Imports have . been --.on - a de- 
efining teenfi since toe sfiftl- of 
the year, mainly because of a 
sharp fall in demand 'from the 
oil exploration ' and drilling 
sector. 


- So- the Commerce Department 
will be walking' into a mine' 
field todajr, which is why various 
attempts are being made— so-far 
unsuccessfully— to pull dffsotne 
voluntary agreement , with* 'the 
European producing rouhtries. 

The immediate reaction to its 
decision will be crucially im- 
portant. and there wtU'.be * a 
need for cool heads bath in 
Europe- and the U.& As one 
importer put it: 41 If one. guy 
shoots and theothergnysfcots 
back, due next thing you knerw 
you have a war," . . 


FOR 16 YEARS the Impover- week for the fifth time in seven 
ished state of Chad, occupying years when M Hissene Habra, a 


a pivotal position at the heart northern Moslem and former 
of northern Africa, has been Prime Minister, seized control 


torn by civil wars. The danger of the capital N’Djamena from 
always has been that they would the forces of President 


Men & Matters 


spread to other African states. Goukouni Oueddei. M Habra’s 
A sprawling territory of some immediate offer to hold talks 


500.000 square miles, where with the rival factions in the 
rather less than 5m people country — there were 11 at the 


Right of way? 


attempt to scratch a living. Chad last count— to set up a broadly- 
is a colonial relic reduced by based provisional government 


a combination of arbitrary boun- should be reassuring. But few 
da ries and petty rivalries to a observers believe his re-emer- 
chronic instability, gence in power will provide anv 
When France granted the coun- i astinK son^ t0 the country's 
try independence in 1960. it divisions * 

already had the lowest per , 

The installation of an OAU 


capita Income in Africa. Since 


then, prolonged drought and the Peacekeeping force last Decem- 
incessant bloodshed have re- ? er * 111 the place of Libyan 


suited in a negative growth rate tioops . backing President 
over two decades and collapse Goukouni, has signally foiled to 


of the traditional mainstays of keep the sides apart. Indeed, 
the economy — cotton and cattle, although Col Gadaffl has lost his 
Faint hopes for the dis- a jly. he has scored a diplomatic 
envery of commercial quantities victory: he can argue that his 


of either oil. around Lake Chad, presence was in fact a force for 
or uranium, in the- northern stability. 


Tibesti mountains, have never The apparent failure of the 


been realised. No one can argue peacekeeping force is also a 
that It is an economy worth blow for President Mitterrand. 


fighting for. 

Importance 


who was instrumental in 
engineering last year’s Libyan 
withdrawal, and who has been 


The commander of the Israeli 
forces >n Lebanon, Major 
General Amir Drori, has issued 
an- order of the <jay to his invad- 
ing troops. 

The order says there should 
be no contact, social or commer- 
cial. with local civilians, that 
looting -would be severely 
punished, that holy places and 
historic sites are to be pro- 
tected. that combat zones are 
strictly out of bounds to women 
soldiers. 

Nothing surprising about that. 
But. given the massive size and 
speed of the Israeli invasion, 
one point did cause some eye- 
brows to be raised. It reads: 
"Road traffic— traffic will move 
along highways as well as nar- 
row tracks. Drive carefully «nd 
observe traffic rules to prevent 
accidents." 


the quarrel might be linked 
with a running battle for control 
of the city's important cultural 
activities between Communisjs 
and Socialists, and rivalry be- 
tween the two parties at national 
level. 

Only a few weeks ago, the 
Communist/Social alliance al- 
most collapsed over the issue 
of who should replace Massimo 
Bogianckino as director of . the 
Florence. Opera after his depar- 
ture to tbe equivalent post in 
Paris. 

And the fact that the Repub- 
licans joined the Co mmunis ts in 
backing the Stones’ visit has 
led to intense, if idle, specula- 
tion on whether Giovanni Spado- 
lini. the Republican Prime 
Minister and a Florentine, 
might be a secret Stones’ fan. 


Don't thropJ fa ZOp 

^ (t'U float* 


enforced rules— and that eariy 
warning of dangers is vital. 
She is now investigating a num- 
ber of problems in the U.S. that 
could have implications for 
Britain, notably the effect on 
the air we breathe indoors of ; 
over-insulation. woodbunting 
and other cheap fuel heating 
systems, and the dangers of 
toxic fumes .when modern 
fuuisbings catdi fire. 


o 


There is no better 


Provident Liffe 


WSHlf* 


The long-term importance of supporting the faltering Chad 
Chad lies in Us geographical administration to the tune of 


Long hop 


position bordering six states. S3.5m a month. However, the 
from Libya in the North and OAU had become impatient 


Beached boys 


Sudan to the east, to Nigeria with President Goukouni’s 
and Cameroon in the West. As refusal to negotiate a ceasefire 


looc as war continues in the with M Habra, while the govern- 
ferritory. there is a threat of ments providing the peacekeep- 


its spilling over those ill-de- mg troops — Nigeria, Senegal 
fined African frontiers into the and Zaire — were becoming 


neighbouring states, following increasingly desperate about 
the thousands of refugees who the cost of the operation. When 


have already fled. M Habra's final push came, the 

It is also of more immediate OAU force stood to one side, 
importance to Those who fear _ • 
the expansionist ambitions of Failure 
Libya’s Col Gadaffl. That in- _ , 


S ’ ^ spread. The U.S. Comment is 


governments of several West b ^ ckill ^ a proj'ecf to propose 
3 f ^ - v ?, th , M ° slen l some form of federal constitu- 


k - iS H 0f ^ ^ght deteT toe 
tension. The OAU attempt at 


t0 organising a peacekeeping force 
?. f France - has proved a failure, mainly 


Int S ! aked i ? 1 rep “f a ‘ because its heart was not In a 

pea / e l u s?] 116 ' venture it could not afford- The 
‘ and ^[ es,dent organisation now has an oppor- 
Mitterrand has given that aim tunity to exercise the somewhat 
—an African solution to an cheaper skills of diplomacy in 
A""™ ProMem. wrthout the bringing all sides round a fable, 
intervention of outside powers Prospects fnr success may not ' 
ms full support. . be great, but it is the only alter- 

Power changed hands this native worth considering. 


The subtleties of Florentine 
Jeftwing politics could bring 
about the cancellation of next 
month’s appearances in Italy of 
the Rolling Stones. 

After - a • heated six-bour' 
debate, the city’s municipal 
council has voted 28-25 to ban 
two concerts which the rock 
group was due to hold in 
Florence. Similar events in 
Turin, and possibly Naples, may 
now also -be called off. 

The controversy ova: the 
*' Pietre Rotolanti " split 
Florence’s leftwing local govern- 
ment While tbe Communists, 
the city's dominant party, 
backed the visit, their Socialist 
partners joined with opposition 
C&ristian Democrats to secure a 
majority against it 

Florence, it was claimed, did 
not have tbe facilities to cope 

with an expected influx of 
300.000 And the musicians, 
said Francesco BosL . the 
Christian Democrat leader, 
"also bring drugs witH them.” 

Some suspect however; that 


Brazil's ingenuity in conquer- 
ing new export markets knows 
no bounds. Not content with its 
reputation of being toe largest 
exporter of frozen chicken 
legs to Saudi Arabia, it has now 
turned its attention to the 
.export' of frogs— by the tonne. 

The Superintendency for -the 
Development of Amazonia has 
approves _ a project calling for 
•the development of a large frog 
breeding centre near Belem in 
the state of Parra which win 
turn Brazil .into one of the 
world's largest frog producers 
by 1985. -- - " - \ . 

According to a report by the 
Banco do Brasil, the project' 
Involves "the breeding of frogs 
in semi-captivity, as well as 
slaughter, industrialisation, mar- 
keting and export of the meat, 
liver paste, thighs, legs and 
skin." 

Already ‘this month' the Real 
Frog ’Breeding Centre is 
scheduled to begin exports of 
frozen frog meat to the U-S- 
American gastronomes can ex- 
pect to chew their way through 
15' tonnes ot the stuff a year 
from now on. 

t 


Safe-keeping 

NANCY Steorts, cbmnnan of 
the U.S. consumer product 
safety commission, arrived in a 
wheelchair for the Royal Society 
for the Prevention of Accidents 
conference in . Bi rming ham 
yesterday. 

She had slipped on a loose 
paving stotie at her Washington 
home, sprained an ankle, and 
was now, she said, " a non-walk- 
ing example of the need for 
more care in household repairs." 

Steorts’ powers in enforcing 
product safety in the U.S. are 
wide, and she has been closely 
watched by American industry ' 
since die was sworn in -.late 
last year. . She has already vir- 
tually closed down a small. In-' 
dustry by banning the use' of 
urea formaldehyde foam ' In' 
insulation. . 

But she insists that voluntary 
standards are preferable to 


Undeterred by toe ominous pre- 
cedent of Carr Sebag. which 
did not find three senior -part- 
ners much of a help when the 
going got (heavy, the newly- 
merged discount house. Cater 
Alien has opted for -the ..prin- 
ciple of dual controls,.- 

Its first annual report boasts 
two chairman-style statements, 
one from Alistair Buchanan, 
late of Allen Harvey- Ross, and 
the other by James Barclay, 
late of Cater Ryder. Barclay is 
deputy chairman of the holding 
company but chairman of tbe 
discount house: out of deference 
or reticence, he writes' a few 
paragraphs shorter than 
Buchanan. 


Extel Cards 
Exfel Comp 
Searches. 


ny 


ExteTare 


Discount house mergers can 
be bloody affairs, since toe main -- 
objective is usually to reduce 
-overheads — which means. -dis- 
missing half tiie combined staff. 
But Buchanan extols tbe vir- 
tues of the .“people’’ side of WJ1. 
brokinc. and it does seem pos- 
sible that the opening of Liffe,- 
the new financial futures mar- 
ket will providentially absorb a 
number of employees. 

Elsewhere, toe company is 
busy rewriting history. The 
proud monogram — CR 1816 — 
with which Cater Ryder used to 
proclaim its antiquity (has been 
replaced by CA 1816. . Some 
might feel that CA 1981 wpuki 
be a more honest vintage. 


• Exm.li lh» i»olu»W t«i* mrt Ejetanoi.WBBraph Conwwiw^d. 


r 

9 To: Esiri Statistical Service* T ii-j . . 


3745PariSt..Loodon,EC2A4PB. 
TboocOl-253 3400. THex: 262687 



I am interested Jn the mfijmuUon you sappy about companies. 


S--~ — ; — r— 7T — ~ 

Observer 


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7 







^nancial Times Thursday June 10 1982 


ECONOMIC VIEWPOINT 


What the Summit left to do 


By Samuel Brittan 


ALTHOUGH I saw only one of 
the menus of the Versailles . 
stunmtt and was not in personal 
attendance, it so happens that 
in the days Immediately before 
and after I was exposed to a 
nch variety of standpoints from 
which to view the results. 

The primary purpose of my 
continental trip was to attend, 
a meeting of Prof. Karl 
Brunner's excellent and well* 
run Interlaken Seminar entitled 
“ Analysis and Ideology 
which attempts to apply econo- ( 
mic analysis to issues formerly i 
regarded as the exclusive pre- 
serve of sociologists or political; 
philosophers. 

People of all points of view | 
were present: on the American ‘ 
side it included several econo- i 
mists close to the monetarist 
wing of the Reagan Administra- 
tion. I also topk the opportunity 
to visit policymakers in Frank- 
furt and Bonn, as well as call 
on the “central bankers' own 
bank,” the Bank for Inter- 
national Settlements in Basle. 

With the exception of Inter- 
laken, the conversations were 
on a “non attributable'' basis. 
But it is not betraying any con- 
fidences to say that the people 
I saw at Basle, Bonn and Frank- 
furt regarded themselves as 
“pragmatists.” whereas the 
Interlaken economists were 
avowedly concerned with 
theories of cause and effect and 
with principles for guiding 
policy. 

Along the Rhine and its 
tributaries, the French Finance 
Minister, M Jacques Delors is 
seen as a “good guy" who 
deserves all the international 
support he can get. The IMF’s 
managing director, M Jacques 
de Larosi&re is also a good guy. 
Among British leaders, James 
Callaghan is seen as a good guy, 
Harold Wilson a bad one. The 
arch “had #iy” is Beryl 
Sprinkel. the U.S. Under Secre- 
tary for Monetary Affairs — 
infer alia because of his 
scepticism about foreign 
exchange market intervention. 

The German-speaking Social 
Democrat world admires a cer- 
tain style of government. Chan- 
cellor Helmut Schmidt does not 
argue for or against an 
“ incomes policy,” but points 
out that he spends “ 200 hours 
a year ” talking to union 
leaders. President Giscard 
d’Estaing's mistake is seen as 
in not having done likewise. 


The current German approach" 
is to emphasise the control of 
Budget deficits and to down- 
grade monetary targets. It was 
always thought that the Reagan 
and Mitterrand Administrations, 
which began by downplaying 
Budget deficits for opposite 
ideological reasons would even- 
tually see the light; and it is 
now thought that the French 
will do so first For many 
Reagan advisers now accept 
that a fiscal compromise 
between the President and 
Congress will have to be post- 
poned until after the November 
elections, and that there will be 
no “Budget Resolution" this 
session. Thus existing policies 
will continue, leaving the deficit 
at the $100bn level, give or take 
quite a few billions. 



Yet something has changed 
m the American side. It is 
iow accepted by President and 
Congress— os >it was not a year 
igo — that the upward drift of 
the U.S. Budget deficit must be 
reversed. The argument is 
ibout the mix between tax 
:ncr eases, military curbs and 
iocial spending cuts. 

The new attitude has come 
Tartly as a result of the realisa- 
tion that the projected 1982-63 
3udget deficit is not a reces- 
son-induced temporary horror 
aid that even the long-term 
tend is steeply upwards. Pro- 
fessor Brunner’s own Shadow 
Oien Market Committee has 
pr.jected a S250bn deficit for 
1914-85, on the assumption of 
notnal economic growth. 

hdeed the word "uncer- 
taiev ” brings out a theme 


common to the continental 
pragmatists and American 
theorists. The world recession 
has been W-shaped. The first 
dip in the second half of 1980 

was succeeded by a short-lived 
and shallow upswing in 1981 
only to be followed by a further 
dip in 1982. The OECD and 
most other forecasters expect 
some recovery towards the end 
of this year and in 1983. but 
not sufficient to reverse the 
world-wide rise in unemploy- 
ment or even for it to level off 
before the second half of 1983. 

The obvious answer to what 
has gone wrong is the sharp rise 
1 n “real interest rates " — a 
concept which appeared in a- 
summit communique for the 
first time. They are particularly 
high in the U.S., where the 
usual estimate is 7 to 8 per cent 
on the basis of the long term 
Government bond yields 
adjusted for inflation. A study 
for the U.S. Treasury concludes 
that same 5 per cent of this, 
historically enormously high, 
figure is a risk premium against 
a re-emergence of inflation. 

The inflation uncertainties 
affect lenders and borrowers in 
opposite ways. Lenders, who are 
afraid that U.S. inflation will 
bounce back are insisting on an 
interest yield well into double 
digits. On the other hand cor- 
porate borowers are aware that 
if inflation stays low or 
declines further, borrowing at 
13. 14 or 15 per cent rates will 
prove prohibitively costly. So 
they play safe and borrow short 
term, thus conveying the pres- 
sure to bank lending and bill 
rates — and thereby doing what 
financial analysts call “weaken- 
ing their balance sheets." 

Being short of ideas for 
tackling these problems the 
Summit leaders fell back on 
commitments to co-operate on 
policies to secure economic 
“ convergence.” There is now 
a new emphasis on the IMF in 
the mutual “surveillance” of 
economic policies. There is a 
cryptic reference in the com- 
munique to the five currencies 
constituting the Special Draw- 
ing Rigit (SDR). This is an 
oblique way of referring to the 
Group of Five. 

The Group, whose existence 
has never been officially 
announced, consists of the U.S., 
Japan, Germany, France and 
the UK 



' A*. : 1 ’ 


** ' ' "*'*21* * 
/ '' ' 



(G/jm Gen in undertaken directly by the IMF, 

Of Jacques de LArosIdre, Managing Director of the to They also ‘exfiort the conuner- 
be in charge of post-Snmmit “surveillance**.. < rial banks not to be over-cauti- 

! ous — rather like the Pope 

. „ . preaching in favour of sin. 

The Americans and Germans unemployment is approaching;^ TheioroWem. if it exists, is 
in particular would like the 2m with lrttle prospect of allevi- ^ examp j e 0 f u external ” or 


country. Much more important 
is that- -if there were a run on 
foreign currency denominated 
deposits, some central banks 
might sot have the foreign 
exchange to save tire depositors. 
Open market -operations in 
purely domestic currencies 
would not help here; and the 
international swap s ystem 
would have to be used to- heap- 

A . chain of banking collapses 

Is, however, usually regarded os 

an amateur’s ragbtmare. 

Central bankers are much more 
.worried that any major default 
would lead not to bankruptcies 
but to a drying up of “ c ountry 
lending.” Already some Third 
World countries Are reported to 
be experiencing delays in rais- 
ing finance m -the wake of tire 
Polish and Argentine difficul- 
ties. An aggravating factor is 
that a $50bn deterioration in 
the Opec balance of payments 
has still to reveal itself in the 
improvements in the current 
balances of any other part of. 
.the world. The counterpart is 
still being taunted by inter- 
national statisticians. 

Central bankers believe that 
more country lending should be 
undertaken directly by the IMF. 
They also exfiort the commer- 
cial banks not to be over-cauti- 
ous — rather like the Pope 
preaching in favour of sin. 

‘ The problem, if it exists, is 


IMF surveillance and studies of 
the effect of exchange rate 
intervention to become the 


. . , " “ spillover " effects, very well 

Among commercial bankers Xn 0WT1 ^ other areas of econo- 


the main worry is not co-oxdina- 


personal responsibility of the tion of macro-economic policies 


financial 
off by 


mics. In other wends the 
adverse repercussions on the 
international .system of ex- 
treme caution by an individual 


Fund’s Managing Director work- but the fear of a financial- international svstem of ex- 
ing closely wiU, the Five The coltapse mjgered ^off by ^TimUvidS 

BIS is in any case likely to do borrowers defaults. The chain exceed the benefits to 

its own study of the last of bank crashes foEkwmg the itself 

subject, but; without any collapse of the Creditanstalt in. -r*, e nopm-r ’resoonse to such 
illusions about dispelling the 1931 remains a folk memory. . spubw^SeciTiTto alter toe 
argument. / Central bankers admit that . balance of incentives by taxes 

If the main problems were some combination of a default ot subsidies or. occasionally, 
lack of coordination between by say a Third World or Come- Ganges in property rights. An 
countries or excessive exchange con borrower, coinciding with international insurance faeilitv 
rate fluctuations, then the a large domestic bankruptcy at 
debate about securing exchange a tiSie of recessiorvSuld 


borrowers’ defaults. The chain bank can exceed the benefits to 
last of bank crashes following the *>L e itseif 

toe The normal ’response to such 

toe 1931 remains a folk memory. . spuiover effects is to alter toe 


Central bankers admit that . balance of incentives by taxes 
some combination of a default or < ^sidles or, occasionally, 


a large domestic bankruptcy at perha!ps subsidised by govera- 


recession. 


rate stability through converg- just conceivably threaten' a 
ing domestic monetary policies really big bank wftb insolvency, 
as advocated by the U.S. or the Most major banks stfiB have 
political manipulation of an ascertainable bead office sub- 
exchange rates advocated by ject to the jurisdiction of one 


the French would be vital. or other 
But what stands out a mile is would hav 
that the trend to rising unem- acting as 
ploymerrt and low growth is resort.” T 
common to countries with the interests i 
most varied political and ing other 
economic philosophies. In tecled btu 


or other central banks which 
would have Che primary job of 
acting as a “ lender of .last 


economic philosophies. In tecled but not necessarily the 
Germany with wage settlements threatened bank itself. 


resort.” The doctrine is tbat.the fidence and d im i ni s h perceived 
interests of depositors (indud- risk if toe “ lender of last re- 
ing other banks) would be pro- sort " obligations of central 


L ombar d 

The case for 
fairer voting 


By Peter Riddell 


mentis, might help. At any rate 
here is a more fruitful field for 
official ingenuity than the pre- 


at.t. THE. mutual back-slapping 
during President Reagan’s visit 
to Britain about shared demo- 
cratic traditions missed tije key 
to the survival of Pa rliam entary 
Institutions in the UK — some- 
what ironically in a week mark- 
ing the 150th anniversary of the 
signing of the Great . Reform 
B1H- 

The hallmark of . the" British 
political tradition is not democ- 
racy— a development of only 
the last 60 years— but adapta- 
bility. In toe absence- of a writ- 
ten constitution like, that in the 
U.S., British political institu- 
tions have not been static, but 
changing to ensure accepta- 
bility. 

A fresh challenge has arisen 
again over’ the electoral system. 
The case for reform is 1 not a 
theoretical but a practical ope. 
I write as a small' conservative 
on constitutional- issues, believ- 
ing in organic change rather 
than' mechanistic blueprints. 
The first-past-the-post system is 
now fating to fulfil the funda- 
mental objective of fairly repre- 
senting the preferences of the 
electorate. 

The inadequacies of the pre- 
sent system were diown during 
the local council elections a 
month ago. The majority of 
successful candidates won with 
less than half toe votes cast 
and, given toe tow turn-outs, a 
third of toe electorate or less. 


of sent obsession with manouvring 

°£ ? n head office ato- ^ Un4tod states into interven- 


ing in the foreign exchange 
markets. 

Meanwhile it would help con- 


Bizarre 


of 4 per cent, inflation falling 
below 5 per cent and the unions 
regarded as “not a problem.” 


g other banks) would be pro- sort ” obligations of central 
cted but not necessarily the banks, to prevent a mass de- 
reatened bank itself. struction of bank deposits, were 

A minor difficulty is toe case sprit- out by the BIS, or the 


of jointly . owned subsidiaries 
with parents in more than one 


Group of Five or the summit- 
eers or some other worthy body. 


In the local elections the 
Alliance gained just over 25 per 
cent of . the vote in England 
yet won less than 8 per cent of 
the seats, ha Coventry and 
Southampton, for example, 
around a quarter of toe -total, 
vote was rewarded with no 
seats. 

The main objection is that 
toe results grossly distort toe 
wishes of the electorate. In toe 
London.. Borough, of Lambeth 
there was an undoubted swing 
a gains t Labour, reflected in a 
fall in its share of votes cast 
since the 1978 elections from 
49.2 to 33.5 per eeat, yet the 
party still won. half ' the seats. 



■ft. Tones 

of the vote nearly 
while toe AlU* nc ^ te won 
27 per cent of ^ fieats . 
only <? Pff SSn-e manoeuvr- 
It was only “outgoing 

ings involving an a 

Stour .^^^Sur^ule. 

Tory which ended Labour 

fThese results are de e d ^"® 
for reform, ™ ° £ t( f£ 

!3S £«« 

munity links- 

Priority 

One of the main obstacles to 
change is the pedantry and 
obsessiveness of 
reformers. Their enthusiasm for 
their own pet schemes- and 
nothing less — repels many 
sympathisers. This attitude also 

ignores toe fact that every 
reform since 1832 has been dic- 
tated by the political pressures 
of the time with original propo- 
sals being changed. 

The priority is to secure some 
change, not perfection. A good 
starting point might be local 
government with either a single 
transferable vote in large wards 
or the alternative vote in single- 
member wards. At the national 
level, the issues are more com- 
plex, both given the vested in- 
terests of sitting MPs and under- 
standable worries about the 
power of ." blocking minorities. 
Any proposals should takeinio 
account the need for a direct 
constituency link between 
elector and member and should 
not be too fussy about exact 
. proportionality. 

- Changing tire electoral system 
will neither remedy any of 

* Britain's basic problems nor, 

• contrary to the hopes of same 
reformers, necessarily produce 
more consistent economic man- 
agement. Reform does, however, 
offer the chance of renewing 
support for the Parliamentary 
system itself. 


Letters to the Editor 


The true tax burden suffered by banks is very great 


From the Secretary-General, 
Committee of London Clearing 
Bankers 

Sir. — No one would dispute 
your view (June 8) that bank 
taxation should be equitable. 
What is distressing is that you 
have once again assumed — with- 
out any analysis of the facis — 
that the effective tax burden 
on banks is currently unduly 
light Because tbe tax system 
foils to .pay regard to toe effects 
of inflation on bank profits, the 
true tax burden suffered by 
banks is actually very great. 
Leasing activities can serve to 
reduce the amount of tax 
actually paid, but they do not 
remove the harden because most 
of toe benefits of the capital 
allowances are directly passed 
on to customers through lower 
rentals. 

The implication in your 
article that the present balance 


Cross-Channel 

links 

From Mr A. Gueterbock 

Sir,— Mr K. W. Groves (May 
29) continues to extol the vir- 
tues of EuroRoute which he 
claims can be built in less time 
than a Channel tunnel. 

This is a truly remarkable 
claim to be able to construct, in 
four years, a mix of bridges, 
artificial islands and tunnels 
under and over a stretch of 22 
miles of water, when the con- 
struction time for a typical 
bridge spanning less than a mile 
of water takes about toe same 
time. 

Over the past months we have 
been assailed with the merits of 
British Steel's overly ambitious 
EuroRoute project to link 
Britain with France, a scheme 
bo ambitious that it extends the 
known frontiers of technology. 

Irrespective of ever being able 
to obtain permission to con- 
struct such permanent navi- 
gational hazards in the busiest 
international waterway in the 
world, through which over 500 
vessels daily ply their trade, no 
immersed tube tunnel has 
ever been built in the open sea. 
Marine equipment capable of 
excavating a trench in the sea 
bed into which would be located 
125 metres long, concrete funnel 
sections in depth of water over 
50 metres do not exist. 

The cost estimates for a pro- 
ject of this magnitude and com- 
plexity can only be regarded as 
open - ended “ guesstimates.” 
The original cost of EuroRoute 
given in evidence before the 
House of Commons Select Com- 
mitee was estimated as being 


sheet streture of banks is im- 
prudent s unacceptable. The 
degree ol maturity transforma- 
tion has mdou'btedly increased 
as they .ave extended more 
longcr-teri loans, and there is 
a limit to the extent to which 
such lendii? can be financed by 
short-term ieposits. This is a 
matter all banks keep under 
careful rev&w. If the limit is 
reached toe. will Irave to look 
for longer-erm sources of 
deposits, reognising that this 
will mean Igher costs which 
will have to be passed on to 
their borrowrs. There will be 
no need for reserve require- 
ments to ''ittier' them to do 
this: thev will-io it of their own 
accord if and when the need 
arises. 

I would alo dispute toe 
assumption u-derlying your 
analysis rhat tl>re is a causal 
connection run.ing from toe 


accumulaton of capital through 
retained profits .to the pursuit of 
new types of business. Like 
other rational business enter- 
prises. banks seek -to enter new 
markets as and when they seem 
commercially attractive 

(Government controls permit- 
ting). If retained profits were 
sufficient to provide the neces- 
sary capital backing that would 
be splendid, but in practice in 
recent years banks have had to 
raise external capital on a sub- 
stantial scale, even in years 
when profits have been com- 
paratively good. If -they -should 
ever run out of profitable new 
markets it is harfily likely that 
they would go into unprofitable 
ones just because toe capital 
was there. 

Leslie W. Priestley, 

The Committee of London 
Clearing Bankers. 

10, Lombard Street, EC3. 


between £4.6bit a-d £6bn and 
confirmed as beii; within 20 
per cent either w.y 0 f actual 
cost. This estimati was subse- 
quently revised to ‘^.Sbn — the 
figure currently bein, promoted. 
Such a wide rangingquetuation 
of estimates in a natter of 
months destroys all onfidence 
in the value of such fibres. 

Mr Groves referrei to the 
public opinion polls, recently 
commissioned by Ei-o Route 
in Britain and France, toich it 
is claimed produced the, iot un- 
expected, result that toeoublic 
demonstrated a market pre- 
ference for driving their vehicles 
across the Channel. A esult 
which can only reflect on the 
credibility’ of public opinion 
polls; for as Mr Groves staed, 
90 per cent of British freight 
and passenger journeys -re 
made by road. Such measue- 
ment of the obvious is a s res- 
tive to the issue as the resul- 
ant polling of a shoal of fin 
demonstrating a marked prefer 
ence to water! 

Any scheme for a permanent 
cross-Channel link must first 
stand the test of feasibility. If 
ihe problems surrounding 
EuroRoute could be resolved, 
irrespective of cost, to achieve 
the convenience of driving 
across the Channel, sea ferry 
operators on the short cross- 
Channel routes would ..be put 
out of business soon after its 
opening and the Dover Harbour 
Board would, cease to have a 
future, creating unem- 

ployment and severe local hard- 
ships on both sides of the 
Channel. Sea-ferry operators 
and the Dover Harbour Board 
would, however, be able to co- 
exist profitably alongside a 
bored Channel tunnel . even 


though, with roll-on roll-off cap- 
ability for road vehicles, ft 
would have an ultimate road 
vehicle throughput capacity 
equal to EuroRoute, at approxi- 
mately a third of the cost. 

Such a tunnel concept would 
be a low-technology project 
employing tried and proven 
methods of construction requir- 
ing none of toe technological 
break-throughs associated with 
EuroRoute. These are decisive 
factors in the limitation of cost 
and programme over-run. parti- 
cularly as the British half of the 
project has to be totally funded 
by toe private sector without 
recourse to Government finan- 
cial guarantees. 

A. F. Gueterbock. 

Channel Tunnel Developments 
(1981). 

27, Hammersmith Grooe, W6. 

From the European 
Representatiae, Mid-Channel 
Access Corporation 

Sir— Mr K. W. Groves’ letter 
of May 29 About toe EuroRoute 
rail and road cross-Channel plan 
makes a good point, if toe 
French and British authorities 
re prepared to accept his alter- 
ative to a bored tunneL Our 
rid-Channel project is based 
o toe assumption that tbe 
Gvemment will prefer a bored 
tuneU In that case, we can 
rauce toe time of construction 
by two years and subst antia lly 
incease the rate of return to 
invars. This will lessen toe 
neet for the guarantees which 
banters are now requesting— a 
print' factor in HMG holding 
up abroval of the project. 

AI Daidson. .. 

Mid-Obiwel Access Corporation, 

S Rue « la Manvtentton, Pwk* 


The unwary 
financier 


From Mr K. Shilleto 

Sir, — Jeffrey Brown (Financ- 
iers take a wary view, June 3) 
is a mite soft on the gullibility 
of banks. A major contributory 
factor to the present shipping 
surplus, if seldom attributed, 
was the profusion of consultant 
and brokerage reports (men 
culpa) that appeared during toe 
early 1970s and which, to a 
lesser extent, are published 
today. The shipping market 
was grossly overwritten. 

While individual Norwegian 
and Greek shipowners may have 
taken little account of all this 
fulmmation. banks and corpor- 
ate shipping companies — great 
natural consumers of paper — 
thrived on a diet of towering 
UJ5. oil import projections and 
fabled Saudi production levels 
soaring to 20m barrels per day 
in the last quarter of this cen- 
tury. This grandiose verbiage 
poured out at a time when the 
banks were flush with money 
and an overfed bank is an in- 
cautious lender. See how the 
panic rerouteing of Arab funds 
after 1974 resulted in the same 
gaddarene lending to often 
profligate and irresponsible 
Eastern Bloc and Third World" 
governments. That is not to 
accuse shipowners of these 
characteristics but one cannot 
blame someone for leaving his 
pockets unbuttoned when a mad- 
man insists on cramming them 
with free financial paper. 

It is to be hoped, however, 
that the banks will not react 
against shipping but learn that 
it is a cyclical business. When 
you can buy a modern tanker 
"for 7} per cent of it’s shipyard 
replacement cost, that is an 
investment that requires no fifty 
pane analysis to justify. 

Yon can always expect the 
unexpected in shipping and you 
have to if you are a banker. 
Kevin Shilleto. 

2. Mulberry Clone. 

Beaufort SL, S\V3. 


Regret for a 


name 

From Mr P, Berliner 
Sir, — There must be quite a 
few readers who will recall 
having benefited from the 
practical wisdom accumulated 
among the partners — there 
were only four! — and their 
staff at Sebag’s tucked away 
in somewhat old-fashioned 
premises in Angel Coart — 
hence this expression of regret 
that a name, for so long one 
of toe City’s “ institutions," has 
now disappeared. 

Peter Beriiner. 

110, Guildford Street* . 
Bloomsbury. 




y 


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24 


Financial Ti 


Coapanies and 


UK COMPANY NEWS 


r. June 4Q--I9S2;' 

■ '*• > '"V-' .'ri/jivi ‘ * 

-as'^ 


Westland down 


Westland, the heE copter. trover- 
craft and control equipment and 
systems manufacturer, saw pre- 
tax profits for the ax months to 
March 3L, 1982. tumble from 
£12.43m to £6.05m as higher 
research and development costs 
of £9.24m against £4.4S m an d a 
swing from interest received of 
£1.38m to interest paid of £1.09m 
took their toll 

However, as pointed out at the 
hast AGM by Lord Aldington, 
chairman, first half figures never 
give a true reflection of the 
group's full year result He now 
reiterates his forecast that 
trading profits for the 12 months 
will increase sirghrtly, but 
because of higher research and 
development expenditure and an 
adverse swing of about £3m m 
interest charges, taxable profits 
will be lower than fast year’s 
£29. 99m . 

Nevertheless, a much reduced 
tax charge is expected and a final 
dividend of not less than 4J>p 
net is forecast. This with the 
interim of 2.75p (2.5p) now 
declared would raise the total 
paym e nt from 7p to not less than 
,7.25p net 

Lord Aldington explains that 
the difference between the two 
halves of the year arises from 
the pattern of deliveries which 
throws a higher trading profit 
into the second half, and from 
the special contribution of some 
£>00.000 per months the com- 
pa ny m ade to the international 
definition phase of the EH.101 
which ended in March this year. 

In the second six months ex- 
penditure on private venture 
research sod development wtfi 
be similar to that for the corres- 
ponding period of 188L 


HIGHLIGHTS 


Lex looks at the proposed purchase by Security Pacific of 
California of a 29.9 per cent stake in Hwe Govett, the first sot* 
deal since the Stock Exchange opened its doors for outside capital 
to go above 10 per cent of a London stockbroker. Westland 
Aircraft’s half time profits Have been squeezed by a high level 
of research and development costs coinciding with. a poor level 
of sales and orders. This has left pre-tax profits halved at£6m, 
though the outlook for the second half is considerably brighter. ' 
Lex then goes on to review the tax changes made in the last 
Budget in the light of the growing feeling that they may not 
produce the hoped for help for the North Sea oil sector. 


Orders generally are difficult 
to obtain but there continues to 
be inquiries for helicopters and. 
Lord Aldington says, be detects 
an increase in interest for hover- 
craft. 

A breakdown of first half sales 
and operating profits, £124. ISm 
(£1 18.39m) and £7.19m (£10. 96m) 
respectively, shows by division 
(£000s omitted); helicopters 
£71,504 (£86,839) and £L399 

(£6,396); hovercraft £18,902 
(£1.754) and £1,188 (£413); 

control equipment and systems 
£23,313 (£19.856) and £3.695 

(£3.771) and other products 
£10,465 (£9.938) and £144 (£266). 
There was a charge for holding 
company and consolidated adjust, 
meats of £237.000 (£112,000 

credit). 

Pre-tax profits included a 
£48,000 loss on share of 
associates, compared with an 
£89,000 profit and, with a reduced 
tax charge of £1.21m (£L37m), 
half yearly earnings per 25p 
share are stated at 6.1p (lL6p). 


Minority profits totalled £1.2m 
(£1.16m) and there is an extra- 
ordinary debit this time of 
£1.61m, representing reorganisa- 
tion costs including 

redundancies. After this, the 
attributable . balance came 
through at £2-03m (£64fcn) which, 
with dividends costing £1.63m 
(£1.48m), left the profit retained 
at £397,000 (£5.42m). No CCA 
figures are published, but it is 
estimated that the taxable result 
on this basis would have been 
£3.1m. 


programme. Inquiries for both 
versions remain at an encourag- 
ing level, he states. 

The contract for the EH.101' 
Angto-Itatian project defied tksi 
was completed in March, and the 
gov e rnments of the UR and Italy, 
are cons i dering jofint proposals 
for the execution of the develop- 
ment programme. In the mean- 
tone, «he contract has been 
extended to aBuw work on key 
items to continue wbSfe a deci- 
sion is being -reached. 

Discussions wdQL the govern- 
ment on the overall- fuutfing 
arrangements for the BHJOl and 
the' Westland 30 ventures axe at 
an advanced stage.- 

Deliveries of the renahung 
hovercraft of . the Middle East 
older remain bn schedule and 
the diesel engine AP 1-88 wfii 
begin triads shortly. . Tbas has 
generated mi encouraging level 
of custo m er i n terest,- says Lard 


Valor ahead 
and sees 
further 
upsurge 


to 


As regards hefi o o pte ts. Lord 
Aldington reports that budgeting 
problems in many parts of the . 
world are continuing Co delay 
the placing of defence heft- 
copter orders, although a snraH 
order for Sea Rings tees been 
placed. 


Work on the production and 
marketing of the Westland 30 
series 100 using the Rolls-Royce 
Gem 60 engine and on the West- 
land series 200 using the General 
Electric CT7 engine continues to 


Reporttog on the system con- 
trols (Enrfefioo, be says tint 
dazing the finst hsdf.lfre comp a ny 

received ostiera generally in fine 
with tts plan, but there has been : 
a of demand in the 

UK and overseas ctvffl and 
defence aerospace markets. 

The other products sector saw 
FPT Ind ustri es. Westland EMG 
(Belgium) and Westtand-Sitec 
(Germany) continue to make 

satisfactory contributions to 
group profits. 

Westtand Engineers and 
Satmders-Roe Developments are 
sttfl facing dSffiadt trading. How- 
ever. action taken to Improve 
competitiveness is beginning to 
show results. 

See Lex 


WITH, second half pretax profits 
advancing from ftm to £T 41 tti > 
the Valor Company reports Mi 
increase from £l-52m to £2.1, tin 
in its Ifignzes for the year.to 1 
March 31 1982. Tarnover of tfeis : 
marnifw-tow of heating . mad 
cooking appliances rose from 
£48.75m to £51. 1 4m. The final 
dividend is raised from LSSttp 
net to 2.33%> for a total of 3X12^ 
against 226B3&. 

Mr THiyiharil . UTmrsgignpL '. the 
chairman^ says that with further 
new products in toe pxpettne-snd 
some smMQ im p ro vement to' the 
economy, Jhe sees -anotberuseful 
profits surige in the commg yiaar. 

At March 31, toe gro u p "had 
cash balances of approximately 
So against £3_5m_ Profits were 
more really obtainable overseas 
as margins] in the hum** 
were low. I - 

The ' yeart? 'trading profits 
increased faom £43m to £l78m, 
but this wai before depreciation 
of £L38m (£L14m). The pretax 
figure was struck before financing 


WITH A -£2J>8m increase in 
second half taxable profits to 
£9. 65m, . Pegler - Hattersley 
firtigTwd . toe year to Mgmqfa 27, 
1982, at £16. 17m compared with 
£LD.S9m. Sales tor the year rose 
from £112.tin to £120.1701. 


Earnings per 2Sj> share of this 
group wtoch - makes domestic 
heating aryd phvmihin g; fitting 
industrial valves and general 
produces, are 1 stated, hagfoar at 
32fip (23.4p) after tax. The final 
dividend . is being raised' from 
5.5p to 8.75p net maftrog a total 
of io7sp (aspv. 

Trading profits rose from 
£4.43m to £7,4ftn and interest 
received from £L.02m to £3.15m 
though . toe from 

associates fe0 to ' £B.19m 
(£6.15 ml. AddStkmaHy there 
was mi ' wti n wtod appreciation in 


metal stocks ' of f38(W160 
(£710,000 depreciation). ... . - 

Tax took £6-0Lm (£3^6m) and 
mwirity defeats amounted to 
£101,000 (£179,000). Last ?W£r 
toerE .wafi . also. on estaaprdtoafy. 
credit of £l-5m. . ■ . ~ ‘ 

Current tost udjustnoents- 
reduced >he pre-tax .profits to 
£9m (£3.l2m). - . V . . . '.'v- 


• comment 

Most of the 6S 'per. cent jtfmp in. 
trading profit at PegterHattersIey 
stemmed from cuts- to operating . 
costs. In .the main manufacturing 
business of building products 
and ..valves there . was little 
change- in- demand bat. overheads 
were trimmed substantially by 
reducing the workforce- ana con-- 
centrattog production at fewer 
locations. Distribution - gained 
from higher: turnover, though 


margins were narrower^ but ’ the 
- industrial -side performed /poorly' 
because ,! of- • very ■' ' de p ress ed 
■ demand/, The ; group’s >wtax 
advance waa aided, by*. 'a rise of 
.■sbzrie tiuL^ssocIsteg- 

remaining after-'tos site irf - ther" - 
. 49-;per dart staJreito'McYoy: GH-. . 
field. Equipment -‘-and . toe pww 
. ceeds of -the.'- laiter. ' boosted 
interest income::- Though- the 
company -has. i- achieved ^aome. 

: recovery to tha:.£18m ppak- .ef 
1 977, • and- tbe full benefit -of 
recent, sucgeiy.is yet to rome, so 
"far there has been qo-^d gn -qf.^- 
] real upturn to demand. . When 
this occurs be . well . 

placed to: -jaake . strong-- gains. : . 

• Meanwhile the search tor acqpiiri- . 
floas - m the U.Sr and Europe gpesh 
pn,' Yesterday the shares were hp 
Bp to a nine year high, hf 2e2p;- 
Meldtog 7J.'pef e&aiL • - - .. 


Brownlee dives to £462,000 


£3.02m. 

There wad a tax charge of 
£486,784 (£5^2230). Stated earn- 
ings per 25p share were up- from 
7.48p to 12.6b basic, and from 
?.12p to ll^wi folly dilated. 

Mr Mbnteg&e comments: “I 
still think tii-eye is plenty to go 
for. Nearly a&) our factories are 
under-utilised. 1 same . quite con- 
siderably. If ydn hare a factory 
maybe 50 per cent used, and yon 
break even orl make a small 
profit,- just t’hinti.what you could 
do if you get back to the demand 
level for which n» factory was 
established.” \ 


from StStlvo. .to 


Utd. Electronic falls £0.78m 


THE DIFFICULT trading con- 
ditions experienced by United 
Electronic Holdings in the first 
six months, which resulted in a 
£371,000 shortfall is profits to 
£30,000, cootnmed through the 
second half and for the full year 
to March 31 1982 the taxable 
surplus showed a sharp decline 
from £859,000 to £77,000. 

Stated earnings per share 
dropped from 6p to 1.3p and a 
reduced final dividend of 0.35p 
(lp) makes a net total of 0.92p, 
compared with L57p. 

Turnover of toe group, an 
etectiromc equipment distributor, 
whose shares are traded on the 
USM, improved by £2.52m but 
margins generally mnw under 
pressure and start-up ousts of 
£243.000 were incurred. 

The year has started with 
signs of improved activity. How- 
ever retailing activities in Tot- 
tenham Court Road are de- 
pressed by a low consumer 
spending and a number of less 


profitable outlets have been 
closed. In order to meet rapidly 
changing market conditions, the. 
video film distribution business 
will be mainly conc ent rated on 
a London-based cash and carry 
depot and regionally franchised 
distributors. The longer term 
prospects for the group remain 
good. 

Operating profits for toe year 
under review came through well 
behind at £274,000 (£1.02m) and 
were subject to higher interest 
charges of £197,000 (£165,000). 
Net profits emerged at £128400 
(£611.000) after a tax credit of 
£51.000 . (£248,000 charge). 

Minorities accounted tor £3,000 
(£61,000) and extraordinary 
debits totaled £21.000 (£26,000 
credit). Attributable balance 
was £101000 (£576,000). 


comment 


The collapse in profits at United 
Electronic Holdings was not un- 
expected and there was a slight 
recovery in volume and profits 


during the second half fin the 
etectromc . components sub- 
sidiary. The company badly 
underestimated toe start-up costs 
of Global Video with loses of 
£243,000. twice as Mgh es bod 
been allowed tor. United’s 
glamorous HiFi Care subsidiary 
was bit by disastrous ’ sales ait 
Christmas end stocks rose to 
£800,000 in this tradittanaMy fast 
moving business. The recession 
looks as if it has finally arrived 
at Tottenham Court: Road, so the 
company Is looking to its elec- 
tronic components mainstay. 
Some 75 per cent of Uxmted’s 
assets are on the electrode side 
and - the re v i va l of ■ toe passive 
components market Led to Intel 
recording, pre-tax profits of 
£204,000 on., turnover of £&227m. 
Meantime bonrownings have crept 
up and gearing has got to an 
uncomfortable 71 per cent com- 
pared- to- 30 per cent last year. 
The share price was unchanged 
at 27p yesterday end toe yield 
is 5 per cent 


W. Williams 
losses rise 
to £0.9m 


have a factory 
t used, and yon 


to the demand 
te factory was 


The pessimism expressed at 
half time for the immediate 
future at W. Williams and Sons 
(HoUUngs) has been borne out 
by increased pre-tax losses of 
£996j054, against £754,973 for 
1981. 

Turnover slipped from £7.68m 
to £8-97m. 

Losses per 25p share rose 
from 10.75p to 25J32p and there 
is again no dividend — the last 
payment was a final of 0.625p 
net in 1979. 

The tax credit was reduced 
from £389,154 to £134,809. 

Since last February the com- 
pany, which has interests in non- 
ferrous metal diecasting and 
engineering, has been 51 per 
Cent owned by C. Price and Son. 

On a CCA basis the attribut- 
able loss emerged at £1.02m 
(£703,000). 


• comment \ 

Valortr improved? performance 
overseas more than offset the 
continued effects ofi the recession 
on consumer spending at home. 
But the domestic side was also 
less grim in some respects-' last 
year’s acq uisit i on of a gas meter 
conversion company has proved 
a success, with toe iidveot of the 
£1 coin, arid toe .arctic winter 
leading to a welcome re dac tion 
of stocks. Net cash is now around 
Sm, and Valor is -prepared to 
grow by acquisition, ibu± not by 
diversification. Valour’s venture 
into gas production in -Ohio has 
not gone 1 quite as .stooothly as 
expected, and it might be three 
or four years before tne invest- 
ment of £300.000 is {recouped. 
Valor has put about £faa into its 
partnership with UnSon *DiL 
Drilling on Block 98/38 m the 
English. Channel begins in 
September and Union is said to 
be “ confident " about prospects. 
After toe results toe shares 
added 4p to reach a 1982lhigh of 
69p. yielding 6.5 per emit ion toe " 
Increased dividend, and on; a p/e 
of & *• 


FOLLOWING S fa 11 in trading 
profits from £L53m to £841,000 
and a rise in associate losses from 
£47.000 to £323,000, toe taxable 
surplus of timber merchant 
Brownlee dived f ro m £1.41m to 
£462,000 in toe year to March 27 
1982. Turnover remained roughly 
unchanged at £23J36m compared 
with £23. 64m. 

However, despite a slide in 
earmng s pear 25p share from 
10.9p to 3.5p, toe final dividend 
of this Glasgow based group is 
being maintained at 3p net 
making a same again total of 3.7p. 

The associate losses were 
incurred by 40 per cent owned 
Smurfit Corrugated Cases (Scot- 
land)— the groups other asso- 
ciate Bornbank Joinery Centre 
making satisfactory profits.' 

Mr J. F. McLelland, ctedrmah. 
says that since toe prospects of 
recovery ter Smurfit will be long 


term, toe^tBrectors hdvp decided 
to withdraw from toe association J 
The group has therefore entered 
into negotiations, for' toe sale of 
its holding and - toe investinenc 
has been written, -down to is 
estimated net realisable value, f 

; Looking to 'the current year 
Mr J. F. Mcliellstid rays predict J 
tion is not - easy- Domesflo 
demand has been lethargic but-’ 
m recent weeks there has bepnj- 
an appreciable increase .pt* 
demand from -the private seotor". 

bmlding trwhiwlTy. 

The trend in Scotomd is IBrely ' 
to be tfirt a hi^ier proportion.; 
of nev? houses will be provided r 
by toe private ratoer than toe 
public sector compared with, 
previous. yeara. - v - 

In toe meantime fie says there^ 
are no disceniibte' signs of 
increased public spending, oni 
construction, but toe' group is- 


cop tlman g to to^move metopda, 

and procedures to 

farads to a mintmton. ^ ■ " 


Pre-tax . profits were strode 
after toterest,af £56^00. 
(£77,000) and tax. tfook £84,000 
(£247,000). . There .‘were . alaf.' 
extzaordinaay debits of. £22.000.- 
(nil) being attrtbatable profits of , 
£356,000 (£U6m). .• 

In -the year raider review -|fp: 
McLeUand. Bays despite vagpnms 
measures to contain coste by; 
reductions m numbmx.empioyed 
and dose attention to toe cootibl, 
of working capltad sati s f ac tory 
margins were bard to achieve 
against fierce .tompetitioct 1 -- Af 
toe fiaH year stage the group - 
was already behind with' pretax, 
profits of £452,000 (£912,000): ; 

' Corrent • cost adjastmenta 
reduced fufi year .eerntogs per 
stere to 1.^ (&3p^ 


Gieves’ losses fall to f 0.46m 


WITH SECOND half taxable 
profits of £144,000, against tossed 
of S642J000, Gieves Group 
-firrishM the year to January 31 
1%2 with tosses of £461J)00 com* 
pared with £1.09m. Turnover for 
the 12 months fell from £39.84zs 
to £24.09m- ■ 

However, despite the- Improve- 
ment in the latter half toe 
-directors are not recommending 
a dividend payment for toe yeir. 

A breakdown of the 12-monto 
turnover figure and trading 
losses of £56.000 (£28UfdO) 

shows; Gieves and Hawkes, taflor 
and outfitter. £6.63m (£6.73m) 
and profit £272,000 (£385.000); 
Redwood Burn, hook and maga- 
zine manu facturer £7.04m 


(^I.OSm)' and £355,000 losse^ 
(£191,000); Chivera Book Sale£^ 
publisher and book seller £lB6n, : 
(£2. 72m) and profit £101,00) 
'(£216,000 losses); Roundaboii 
Garages, motor dealer! and eff 
park operator, £8 .57m (£2LS2ri) 
and profit £80.000 {£237,00 

losses); and central expenses bss 
rent received * £154,000 ' losses 
(£32,000). 

Mr Mocha ei Keeling, chairrim, 
sara toad; moat ot the. grab's 
activities have started the pur* 
rent year on a noticeably b^tor 
tone, and accordingly hope -for . 
a return to profitability /and 
dividend payments. 

He says toe Redwood- Burn 
losses were due almost eitarely 


to its- Esher bindery prior to 
closure in 3u9y '1981. _ '* .. 

The . taxable - paxffits were 
strode after interest .payable 
Off £405,000 <£810,000). There 
was an exceptional credit not 
incCoded m -these profits etf 
£170.000 (nil) -.'for Insurance 
receipts in ' respect of . a. fire 
four years ago. There ww a tax 
credit of £255,060 (£970/)80), 
leaving net losses off- £36,000 
(£121,000). . 

Borrowings were reduced 
during toe year firom £3.3sn to 
£l!3m and toe liquid- position 
has heed further strengthened 
since toe- year-end by- toe- sato 
of a vacant garage property for 
£520,000. . ... .. 


Eva losses lower at £0.9m 


'Rndall 

life 

offers fmeoflkebest 
life assurance policies youHfind. 


EXCLUDING losses from its 
Brazilian companies erf £611jOOQ, 
against previous profits of 
£365,000, Eva Industries has made 
lower pretax losses of £86/100 for 
the year to March 31, 1962. T.bis 
compares with losses of £760.000. 

Sales of this maker of hand 
tools moved down from £23.0Sm 
to £22.6m. In the second half pre- 
tax losses fell from £529,000. to 
£73,000. 

There is no dividend — last year 
the final of lp was also toe totaL 
Losses per 25p share are shown 
as reduced from 13-lp to l-2p- 

The directors feel that signifi- 
cant progress has been made in 
AUrniTi siting loss-making opera- 
tions and toe group is set to take 
advantage of any upturn in the 


economy. 

■Hie sector of- the UK in which 
toe • group . operates did- not 
improve during the year, and 
in some areas significantly, 
deteriorated, Mr. R. Astley, chair- 
man. points out that average steel 
output is still declining at about 
9 per cent every month. 

Motor output in the first four 
months of 1982 was 4.5 per cent 
below even the levels achieved 
in 1981. Although in general the 
principal companies performed 
well, taking into account the 
recession, in the peripheral com-, 
parties the year was characterised 
by contraction and closures- 

Pretax losses, were strode 
after reduced profits from con- 
tinuing activities of £760,000, 


against £796,000, and loses front 
- discontinued activity ■ .of 
£231,000. against £560,00- 

The debit for UK refundancy 
and severance costs fail from 
£293,000 to £30,000. . Werest was 
lower at £585,000, conp^red .with 
£673,000. 

There was a credt for UK 
tax of £85,000, agalot a charge 
of £277,000 last time The over- 
seas charge was shjhtly . higher 
at £86,000, ccmtired with 
£85,000. 

The loss, after *x was much 
lower at £87,060, ompared with 
a previous .£l.l2c. Minority 
debits rose froL £10,000 to 
£17,000, and extraerdtnary debits 
from £762,000 to 3631,000. ’ 


Yearlings 
total £ 18 . 9 m 


•F 

United Spring shows 
£32,000 interim profit 


jQfaftdadngT yndaMjfe —anexrit^^ 


top unit trust groups. 


vtdridi are the most advanced cmrenifyavailab3einltefidd 

i Hiammnsandbgtigfe fnprrro^ 

infl a tkm .proofingcrfplansand m ves lan eite come, 

Soifyopwantlifeccy^ mve s li nQi^orT^jiiemati: 
benefited ytrallfind c«iriiei^ydesignedpo3ides diffedt to beat 


IN LINE wrth the prediction at 
the last year end that the first 
six months should see a return 
to profitability United Spring 
and Steel Group showed pretax 
profits of £32,000 for the half 
year to March 31 1982. This 
compares with previous losses 
Of £179,000. 

“In toe absence of any posi- 
tive indication that the economy 
is improving," says Mr D. Wrafc- 
wood, chairman, “toe remainder 


The performance of the recent ’• 
U.S. acquisition bas been dis; 
appointing says Mr Westwood, 
due to the recession there, but 
he remains confident of Its 
future value. 

The steel division should con-, 
titaue to trade profitably 
aBthoogii there are some signs 
that demand a slackening. 

Group sales rose sharply from 


Midway 
setback for 
Everaris 


Taxable pr.cits of Everards 
Brewery decided from £651,200 
to £611,900 fojtbe six months to 
March 31 132. reflecting the 
severe winter weather and costs 
incurred ir developing toe 
group's premses at Castle Acres. 

Turnover, for the period 
advanced frwn £6.65 tn to £7.37m. 
Tax took £02,000 (£330,000) but 
there were extraordinary credits 
of £I7,50f (nil) after which 


woodT chairman, “toe. remainder to S3 -56m. . An' analyris. of £I7,50f (nil) after which 

of toe year witi con- °f s® 1 ® ^ operating profit by -toere wa- a surplus much, toe 

twin* to be diffiatK. ** The divimon shows: steel £8J5m same at £27,400 (£31^00). 
directors have decided to defer {SSSiv and - f S? )0 

any decision on dividends until J spri S§- p -m -m ' 

the final results are known. f 34 . f3 ^?£P ^ 5 fTl 101*11 flPi 

Earnings per lOp share were ff^SWjOO. ftUUUl U U.C1 

given as 0-33p (kisses Lffip). £®Kk000 (nil) and £19,000 lose 1 ^ - 

w- fed and closu 

wood sara^^S efforts to £166J»0 to £152,000 which left aUU 


Yearlings bonds totalling 
£L8.tei at -12$ p« ceflt redeem- 
able on June 15 1983 have . been 
(issued this week by the following 
local authorities. . 

City of Glasgow .. District 
Councfi £L25th; City of Liver- 
pool £2; Wigmi Metropolitan 
Borough Council ELm; Aylesbury 
Vale District Council £lin; 
London Borough of Southwark 
Elm: Breckland District Council 
£0.25m; Banff & Buchan- District 
Council ' 20.5m; Gravesham 
Borough' Council £0.5m; Ketter- 
ing Borough Council £p.3m; 
London Borou^t ■ of Newham 
a).75m;- North Bedffordrture 
Borough Couadl £0.5m; London 
Borou^i of Haringey £2m; - Aln- 
wick District Couzua3 £0.1m; 
Chi Item District Consicxl £0.5ni; 
London Borough of Greenwidi 
Elm: Test' Valley Borough 
Council". £0.5m; GHjtogfaam 
Borough Counril fOLSsn. ... 

^ London Borough of Redbridge 
£0^m; West Yorkshire'. Metro- 
politan County Coundr £0.7%n; 
London Borough of Bktfield flm; 
City of Leeds £2m; North Tyne- 
side Metropolitan Borough 
Council £0.5m; Royal Borough off 
Kensington and Chelsea £0.5 m. 

London Borough of Haringey, 
has issued £2m off 13|, per. cent 
bonds at par for redemption on 
June 6 1984: North Tyneside 
Metropolitan has. also placed £lm 
of bonds at 131 Per cent for 
redemption on Jtnte 4 1982 -at 
pari 


cstdt of your hands, you can dioose in wiridi of the 9 excellent 
Tyndall funds yourmoneyis invested. 

But whynot findout £ar yoursdf, laBcwidiyonr broken 
Orcon^jetEthecoi^xmbeloworccRTlactusdirectafc 
King William House, Queen Square, Bristol, BSDL 4NT on 0272-277458. 
We wiflbepleased to give you any help you need. 


eliminate losses of the UK profits of £166,000 (£179,000 

spring companies have largely Th«n was » etoaptional 


Camford deeper in the 
red and closes foundry 


been successful. octet nu 

Unfortunately toe effect of Last t 
trading losses'and reorganisation for tax 
costs at (fie Dutch company have earnings 
undermined tost draston’is against 
results. £219 ,000. 


detit this time of 0.84,000. 

Last -time there was a charge 
fer' tax of £30.000. Itetatned 
earnings emerged at £45,060 
against previous . losses of 
£2394*00. 


I To: Eter^DJcMifis, Managing Director life limaed, J 

Kij^WilHamH<rase,Qa«OTSqaare f BristaI,BSl4NX | 

| Hease^TOharodei^ofiiifinew Tndgx^ lij mria'nTifpT lanc. | 
| My major concenisto;— - B 


DIVIDENDS AJVNOUNCED 

Date Corre- Totafl 
(torr ent of spoodmg for 
payment ipayraeni dhr. . year 


□ Protect iny Dung y D Provideapersonalpeaiaoft 


Marne (m 
A ddress 


Ariel Inds. — 0.81 

Blyvoor' 90f 

Brownlee ^3 

Carless Capri LTOf . 

Comet Group int. 1.47 

Cullen's Stores 3& 

Doornfontein 120 H . 

Driefonton 135tf 

East Baud Pty. Nilf 

Eva Industries Nil 

Hi Hibwc 278 

Kloof - 1501 

Ubanon . — I4Qf 

Pegler Hattersley — 6J75 


Sept 17 
July 30 
July 15 
July 2* 
July SO 


PRETAX losses at Camford 
Engneering increased from 
£28(000 to £639,000 in the half- 
yea to March 31 1982. In the 
year to September 30 1981 the 
' grnap, which manufactures metal 
prssings, stampings, machined 
pits and assemblies, had losses 
o' £1. 46m against profits of 
.076,000. 

The directors say a substantial 
proportion of the losses incurred 
during the past 18 months has 
been attributed tn the foundry at 


el Hempstead, and . it has ' redundancy 


rd They ray that- a decision has 
im therefore been taken to close 
If- down the foundry operation with 
he effect from September -and toe 
be group 'has started prieliminaiy; 
tal negotiations for the disporal of 
ed the foundry business and assets, 
es The group'' has also disposed of 
of -its 60 per cent interest to Giliet, 
PreStar and Co at post . 
ial The disposal has not in .the 
ed opinion of the directors, 
as materially affected the firia*»riai 
at position. Further, lasses, and 


proved Impossible in . current 
7. trading conditions to reduce 
-V those losses to an acceptable 
f level- 


Utd. Electronic HMgs4? 0JS 


Tel No: 


| IftifTntBylffninyiiiji Vi m7,BdbftatBa»gC4. i«9H^ndNxlSraB3 


Tyndall life 


United Spring ......... int. 

Valor Co- 

Venmspost — 


Aug 4 

200 

200 

335 

Aug 4 

135H 

' 235 

136 5- 

— 

50 

— ' 

50 - 

_ 

•1 

NH 

1 

July 28 

2.78 

3-58 

3.38 

Ang 4 

*240 

270 

400 

Aug 4 

200 

220 

330 

Aug 6 

5L5 

.10-75 


Aug 6 

5ra. . 

0.92 

LSI 

O. 


We st l an d .. 


fat 3.75 ■ 


Aug 4 
July 30 


j^fafiwirocB^asaaasa. 


Dividends rirmixL pence per share net except where 'otifcrwise Hidrqto 

stated. * Equivalent after allowing far scr to' issue, t On capital ibmitueio "iiilii""""!!!" 

increased by rights and /or acquisition issues, i USM Stort* I Nat Pstrofoos ■> 

less than 7^5p forecast, f Sooth African cents thr on-ghat H Per ■ 

six mnrrtfM- ' Soqofiaa — >«■. 


nGkAe Investment lju&tEL.C. 


SP5AIN 

Priea 

June 9 'i +' or — 

Banco Bilbao 355 —1 - - 

Banco Central 340 —2 

Banco Exxenar 306 .—3 

Banco Hrspeno 31B 

Banco hid.. Cat- 114 

Banco Santander ....... 338 <4^ 

Banco lltquiio 189 —2 

Banco Vizcaya 368 

Banco Zaragoza yai 

□ragados 140 

Ea panda Zinc TO 

Feese — S6.7 f+0.7 . 

.Gal. Ptscjadoa . 34 

HIdrola ...» 84 —2 

Iborduaro 50.2 —0.8 

PatroJoos ... 85 2 •— U 

Patrol i bar . 99 - 

Soqafiaa .. — ID 

Toletantca* 71 .0 <3-~QJ3 

Union Elect- — .60 -1 . 


incurred in the nmniug'dbwn or 
foundry operations, b(it they say 
the remainder of the -group is 
now tradrhg profitably and toe 
directors expect trading' results 
for the second six months to show 
a marked, improvement 


. LADBROKE INDEX 

.- Close 586-391 (—8) ■ 


•_ . THE THING HAtL 
USSf INDEX V. 
12&2 (tmeh.) 

a<we off inatoera 9/6/82 • 

Base date; io/it/8d-uo; 

TeJ.s' M438 1591 : 


? BE 


* .’lS 


■ :■ 1 ^ 


«ac-- 

'!v 


‘fec- 

' fe- 








^uVr ,T? 




ss 


I 


1 





Fume jial . Times Thursday. 1982/ 

Companies and Markets . ;■ 


UK COMPANY NEWS 


MINING NEWS 


m 


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[n ibe 

- f? B*V 

LS« Ul ' 


faith in gold 

BY K3ENNCTH MAfiSTON, MMKK EDITOR 


jewellery sector causes Audiotronic Carless Capel 

sharp decline at Comet to&nsm down at £i. 79 m 


UNDISMAYED fey the-- fail in 
prices of gold. and fihret which, 
resulted in last yearJs net profits . 
dropping to C54.5 td' f£2m) or 32 
rents per share, from CSISm in 
19S0, Canada’s Agnico-Eagie 
Mines has embarked on a pro- 
duction expansion phase, j 
The groundwork , for this was 
laid-, last -year ■ in - accelerated - 
underground exploration and 
mine development ; programmes 
which will be continued in the 

current year!. Work- also con- 
tim/esr on the new CSl2m No. 2-. 
shaft at .The : Eagle - gold mine 
which is due to be completed by 
the end of 1983. 

Mr Paul Penna, 1 president of 
Agnico-Eagle, says:'- “It is 
inevitable -that, the Tdowoturn in 
bullion prices will be reversed 
when interest- rates are brought 
back, to normal 'levels with a 
resultant restoration of economic 
activity and growth. . The . real 
fundamentals, underlying the 
established pattern of steady 
appreciation in the international 
value, and importance of gold : 
remain unchanged” 

Because efforts" were -con - 


centra ted era fasdexBRXBid 

development work rather than 
op gold production during last 
year's fall in bullion prices, the 
amount -of one imfled tf&A by 19 
per cent to 290.480 tons. This, 
together with the effects or * 
reduced grade of ore. nesuMed 
in gold production failing to 
40.328 os. from 58,190 or. 
i This year.' - however, it is. 
intend to mdse ore mrHrng to 
ao annual rate of 432.000 too* 
and this should produce a 
further reduction in asset oasis. 

. Output of precious metals 
should a too Increase bat that of 
silver may continue to be stock- 
piled . until the 'metal price- 
improve*; -the value of bufikm 
aod concentrates oo band rose 
* to. .'CSLBfim ' last year from 
C$858,337. '■ 

Meanwhile, Agmco-Eagle has 
embarked on a resort devekxp- 
meat venture on Pruvideamsles 
Island at the Turks and Caicos 
Islands in the British West 
Indies. Parcels of land have 
been acquired for some $800,000 
and it » intended to carry oat 
holiday * batei-epartmeat 
development. 


Teck arranges the bank 
finance far Bullmoose 


CANADA’S Teck Gonwnrioo 
reports that it has now arranged 
with, a consortium 'of banks the 
financing for : its 51 per cent 
share of the CSSOOm (£133.5m) 
Bullmoose coking’ and steam 
coal project in north-east 
British .Columbia, report* bn 
Soganich from Toronto: 

Lomex Mining has a 89 per 
cent stake in Bullmoose with 
Japan's Nissho-lwai holding the 
remaining 10 per cent 

Teck says that the project is 
proceeding on : schedule. Site 
clearing for the coal washing 
plant is well under way and 


contracts have been awarded for 
construction. 

The townsrte, rail and port 
infrastructure programmes are 
also on schedule. They also 
relate to the big Quintette coal 
mining development in the area 
which is being carried out by' 
. Denison Mines and associates. 

Dr Norman B. Keevil,- presi- 
dent of Teck, points out that the 
completion of the Bullmoose 
mine will provide the company 
with a stable earnings base to 
level out the cyclical extremes 
occasionally experienced in the 
metals side of the business. 


SHARPLY . LOWER first half 
profits were resumed by Comet 
Group following serious difficul- 
ties in He jewellery division. At 
the pre-tax level they emerged 
£1.63m dawn at £4.11m although 
tijnwwer for the period to 
February 27, 1982 came through 
weN ahead at £135.02x11, com- 
pared wtth £118. 14m. 

Tbe directors say tfiat the 
continued fall in the price of 
gold reduced toe group's mar- 
gins on sales explaining Thai Hie 
goJd.waa purchased at a higher 
price than currently prevails. 

TBiey add toat further casts 
were incurred in cjosing another 
factory and that the U.S, sub' 
snikary .is ate o being shut down. 
These actions, they paint out, 
reduced group profits by 
£820,000. 

Although further losses wrH 
be incurred during the second 
half, a substantial improvement 
as -expected by ibe division 
thereafter. 

On the outlook for the group 
as a whole the directors expect 
the continued squeeze on real 
incomes to have an effect on 
sales — apart from jewellery, tibe 
.group .relafls electrical goods, 
gas appliances and home 
improvement products. 

Although they do not foresee 
a rapid improvement in current 
coadiUbns they expect -the 14.3 
per cent increase in ficsL half 
turnover to be exceeded in the 
second six months. They' con- 
clude that actions taken wridi 
improve the situations of the 
group's newer divisions. 

Meanwhile, the dm interim 


RESULTS AND ACCOUNTS IN BRIEF 


GASKELL : EgtOADLOOM (cu-pM 
makw and diiWblMof) 1 R avuUa for 
1 SS 1 already _ known- Fnxftd nuu 
£3. 29m (£3.44n):‘ CdBwrt Kt«a 

E7 83m (£S.75im). Current tabMitiu 
£3 .98m (r4.61m) inotadmg beofc ovar- 
d-raf ls ft. 98m (Ifl-Sm). ShsretwjWef*' 
lundo £5. 33m (fSia4nt)> Decrena in 
ner -ttpind fund*, fit .09m (£872,000 ki- 
erflnaa). Masting; Btsetibum. Jum 26. 
noon. 

COMBINED ENGLISH STORES GROUP 
— Rsfluhs for year to January 30 1982 
and prosDscts _«traady known. 'Group 
fixed assets' £!3.4Sm '• not 

current HUB' fiJG-O&ro (ft 2.4am 5, 
stock £3189(1) (£T8.2*n>. Stmrohotdsrs' 
funds £2fi.4Tm (£27 ^8m)- Dscreasw mi 
net liquid .fund* £7.J*»I 
Capital ctnrwnitmontt Cl. 44m (ffl.SIwO . 
Mooting. fnstituw of DtnrotoM. 
118 PaH Man. SW, July 1. noon. 

BRITISH HOME STORES— Raaulta for 
the year to Apr« 3 1582 already knpwn. 
Shareholders' ‘ .1 until. - 
(£150 .33m). Fixed aaasts €132. 96m 
(C12i.4itn). Net currant eaaata DW-13m 
(£41 .06m),. ♦nolud•nfl■ o«h flod short-, 
term depoeita. £39. 74m (£24. 38m). 1 Net 


PUBLIC LIMITED COMPANY 


building materials and components. 

Dividend Maintained 


for, the year ended 27th March 1982 


SALES * j 
TRADING PROFIT 
ASSOCIATED COMPANIES 
PROFIT BEFORE TAX 
EARNINGS PER ORD. SHARE . 

From Brownlee trading result 
Associated companies' 

- - . loss 

ORDINARY DIVIDEND . 


1982 
fOOO's . 

23356 

786 

(323) 

462 


1981 / 

fooers . 

23336 - ' 
1A56 / 
<47 )/ 
1,409 


6^0 IQJp/ 

(2^p) . - . 

3.7p 3.7p v . 


Comments by theOuzbrmart^ Mr.J. F. McLeZkmdz 

* I)es|^sOIneea^Iyp«Mn^l^^/S2|HX^^IYO^w<rf , 

‘ the most difficult pmods of^ th6 trade’s histofy. ^ 

* Adverse conditions affecting tiie bnUdingindnstry r 

caused considerable fall in trading profit. 


Sale rfinteresi bemg n^edated. 

* Cnrrentyear nncertain althou^i appreciaWe iiwrease 
in demand from jmvate housing sector evKioitin 

recent. weeks. 

AramlGaiHxalNteatiagiiWJ-WylMi /\ 


Capi«s C3 q be obtained tharaaftarfrore fire 
Sscretary, City Saw Mils, Pwt Bandas, 
filasgpw B4.STP 


FTffs 60 minute presertetionon 
finarKial Communications -■ 

Ring Alex Hurst; EIB’sCtiief BeeqSwe; on 

01-4058733 

and mateadstetosee this jnteres^ pesertefioa 

foster Tbmer&BenronAdmtislngLfal 

Oiancay House, ChaiKeryLan^tfflndbnVl<2A.1QU 


dSvideod & be&Qg held at 1.47-p 
per 5p dhare— a final of 2.53p 
was paid for 1980/SI from pre- 
tax profits of £7.2Ira. Firet half 
ear progs per share are given as 
9.7p (I3.7p). 

Tax took - £187,000 (£197.000) 
and after dividend payments of 
£436.000 (same) the retained 
balance showed a drop from 
£5.11m to £3.49 ql 

The electrical stores traded 
satisfactorily. Profits increased 
and turnover was substantially 
ahead. Timberiand and James 
UcOnomy incurred costs as a 
result of corrective actions and 
returned increased losses, but 
both divisions are now showing 
“improving treads." 

Ideal Timber, which has 
reduced its dependence upon 
internal trade, increased its turn- 
over to external customers sub- 
stantially. The -offtake by 
Timberiand was reduced and 
although Ideal's profits fell, 
growth is expected to resume 
"very shortly." 

Polar-pold remained profitable, 
but the effects 'of the recession 
reduced its profit contribution. 
The remaining group companies 
did not affect its affairs materi- 
ally. 

Shareholders* funds at 

February 27 are shown as £3Sm 
f£31.08m) and net current assets 
at £20.15m (£23.11m). 

• comment 

The cost of sorting out the 
trouble spots at Comet appear 
to have fallen more heavily in 
the first half than some 


analysts had anticipated. How- 
ever if, as the company 
intends, these measures ate 
omie-and-for-ali then in the con- 
text of the year as a whole it 
is simply a matter of tuning. 
Tlie current year should, there- 
fore, prove to be ibe bottom 
of the company's profits trough 
with a substantial upturn pos- 
sible in 1982-83. Fortunately 
Hie major activity of electrical 
stores performed well during 
the half year with buoyant con- 
sumer spending raising volume 
which, because of further 
tightening uf productivity, trans- 
Iraled into profit gains. Also the 
strong ' cash position remains a 
sizable contributor. Surgery 
arid new management at the 
loss makers are unlikely to have 
any significant effect on the 
second half, especially at 
McOnomy where the testing 
period will he next Christmas. 
Expectations must, therefore, be 
for a little changed second six 
'months against a year ago. 
leaving the pre-tax outcome 
around £5. 5m. Yesterday the 
shares rose lp To U4p for a 
fully taxed prospective p/e look- 
ing to better times at TL 

WELLCO 

At an extraordinary meeting of 
Weileo Holdings held in London 
today, all the resolutions relat- 
ing to the proposed structural 
reorganisation of the company, 
were unanimously passed. These 
included the proposed change of 
name of the company to Gros- 
venor Group. 


to £0.25m 

PRE-TAX losses of Aadto trunk 
Holdings, the electronics distri- 
butor. row from , £73.008 to 
£231,000 is the year to March 1 
1982— including tosses of 
£320.000 compared with £64,000, 
for companies which have ceased 
trading or been disposed oi 
since the year end. 

With losses per share stated 
at 4.2p (Ojap) the dividend is 
again being missed. 

The year's turnover feM from 
£12. 59m to £S.47m including 
£5 ,92m (£10.07m ) for the dosed- 
down or disposed -of subsidiaries. 

The taxable losses were 
struck after an exceptional debit 
of £15,000 (£153,000 credit). 

There was & tax credit .of 
£28.000 (£166.000) leaving net 
losses of £238.000 (£236,000 

profits). 

As . reported on May 25 Audio- 
tronic sold its loss-making Dutch 
retail subsidiary Allwave for 
£34,000. The difference between 
Che net assets of ADwave at the 
year end and the sale proceeds 
bad been charged as an extra- 
ordinary debit of £203,000— last 
year there was an extraordinary 
credit or £28,000. Of the 
£320,000 losses incurred by sub- 
sidiaries closed down or- sold 
since the year end, AH wave con- 
tributed £264.000. 

Also reported oo Way 25, 
Audiotronic plans a major 
capital restructuring which 
would Include the raising of 
about £400.000, although details 
of this- have still to be settled. 


AS FORECAST at the time op 
the group's rights issue lust May. 
pre-tax profits at Carless Capel 
and Leonard were £l.79m for 
the year to March 31 1982. This 
cumpures with previous profits 
of- £4J3m'. Turnover moved 
ahead from f57.63m to f74.S4tn. 

The dividend has been held 
at 2.75p with a same-again final 
of. 1.75p net ou capital enlarged 
by the rights issue. Earnings 
per. lOp share were shown as 
falling from 10.7p to dp. 

The direction state that they 
intend tu at lea>n maintain the 
current level of dividend for 
next year. 

The group continue to hold 
its share uf markets and is 
ready to take advantage of any 
upturn in the UK economy, say 
Hie directors. They point out 
that the results were achieved 
in difficult trading conditions 
which are still being experienced 
by oil and petrochemical*. 

They add that commissioning 
trials on the £2.3m extraction 
plant at Harwich refinery are 
we)f advanced, which will be 
fully operational within a month. 

Since November 1981 Carless 
Expl oration bas drilled four UK 
welis, three of wbich were 
successful and the fourth, an 
appraisal well at Humbly Grove. 
Sowed 750 bopd. -Two offshore 
wells in the North Sea on block 
36/2 lb Sowed on test 6.450 and 
5.100 bopd respectively. The 
company has confirmed an exten- 
sion of the adjacent Balmoral 

field. 

in the U.S. an Independent 


doers me in working capital C4.T3m 
(£2- 13m). mclucHng ducraas* in stoefca 
£2 .7m (£834.000). Rati ring chairman. 
Sir Jack Cadardl: aaya forecasts for 
(atari voiiiina salat in 1982 suggaac 
no increase. Ha add* that arc up has 
financial atewwHh to ansure eotokmed 
ralurbtxhmant and axpansion of stores. 
Sir Jack will ba tuccaadad by Sir 
Maurica Hodgson, who joinad tha board 
in- April, ahar tha annual maatlng to ba 
hold at tha Cnnnaugbc Rooms. WC. on, 
:Juim 30. at 11.30. am. . J 

SCOTTISH AGRICULTURAL SECURI- 
TIES CORPORATION— Result* for the 
yaar to March 31 1982- already known. 
Fixed as*at».'C16^Tm (£17.C6m). M« 


2.45 pm; • j 

WAMBERg STOO C S Wo n It* lor ymm 
ended Fabruary S 1982 already known. 
Group fixed assets B032n (Cl 6.05m): 
not currant assets £&23m (£4^ 27m): 
ahareholdani' funds QDJ6m (E17.4ni\. 
Meeting, Great Eaatam Hoeai. EC. Jobe 
B at noon. 


evaluation of Carless Kesources 
Oil and Gas Properties as of 
April 1 1982 estimated that 
developed aod proven producing 
reserves exceed 4.5bn cubic feet 
of oU. 

A net carh flow ‘of S6m _ is 
anticipated front these properties 
in rhe year starting April 1 1982 
which will make a substaotial 
profit contribution duiing Has- 
year, say the directors, 

• comment 

As forecast at the time of the 
recent rights issue. Carless has 
Turned in a dull set of figures. 
The company's traditional busi- 
oesses — petroleum products and 
chemicals — remain soggy aod 
show little signs of a pick-up. 
The shares, down lp to 177p 
yesterday, still float on a sky-high 
"rating which anticipates pyro- 
technics from the company's oil 
and gas activities. News on the 
second appraisal well at Humbly. 
Grove is expected next week, 
while a third well should he 
completed in the autumnl Tbe 
drilling then moves over to mi 
adjacent area with the company 
expecting to sink at least five new 
holes in the full year. Nonethe- 
less. shareholders should not. 
expect profits to flow from 
Humbly until the end of 1964. In 
the meantime, the IT.S. activities 
are providing a comfortable cash 
flew and could add as much as 
£1.5m to this year's pre-tax total. 
This points to about £3.5 m for 
the year. The yield- is about 2.2 
per cent. 





Kapp -i y Mr Morrison can haKEarnings per dare are ipto65p 

slattiflsdwwifliaanile. firm 5'4p (adjusted) aid 

Because he Is abouttotfscosej fsi5>l7%to2-^. 

TianiCT- i H^infei^pri^anri ^ Aficmf<x)fi^lamdiasecoiKllialf 

<>iirnin^ p OT<;h^ h;ngiiiciEasedTCtagaSLAB(i aimed at ^bHshii®Han^ 
flwrim ririptvi icup againJDQ. cousecufireyearofinaEasedprofit 

Ibrfiiesfe:nKfflfiisi5)tDMaich311982, CMmn^esideKeofthesaccessfobe 


r> i vtj »j *) (»•' i f Tm^gvitnlv* j iiii i ij »j * i nS i ■ 


2l%fojp2lmGOB2^anriherieoonlfiist nothing hut good basic In du st ri es bothmfhe 


unsaaraesaainteunsdKasaon!. 

ffycni would hheto open some good news 
yoursd^ woy not witte to FMisoaTtust HjC, 
irSEEPOSi; Loodui SW3 1 BR,(qo stamp re- 
qmrecE)ortelqtaie Qtr589707a 

HansonTrust 
















Companies and Markets 


UK COMPANY NEWS 


financial Times 


REPORTS TO MEETINGS 


BIDS: AND DEALS 


EUROPEAN OPTIONS EXCHANGE 


l Aug. 

Sorlea j Vol. : Last 

GOLD C 5300- — [ ■ " 

GOLD 0 5325 1 j 20 1 

GOLD G J3B0‘ 20 10 

GOLD C 8375 “ | _ “ 

GOLD C 540° i 2 i 2.50 

GOLD P S325 — ' — 

GOLD P 5350, 16 I 30 

12 H NL 81 87-91 

C F.107.50' 1X0 ; 4.10 

C F.110 100 : 2.40 

G F.l 12.50 100 ! 0.50 

C F.l 17.50 — — 

p F.107.6G - ' — 

p F.l 10' 1X0 [ X 

103, NL 80 86-86 

p F.102.S0[ 30 | 2.40 

11 U ML 82 88-92 

C F.105 - . ~ 

p F.100, 40 ! 0.30 

10 NL 82 8609 

p F.97.50; 100 I 0.60 

July 


Hot. * Feb*. J . 
vol. i Last I Vol. ; Last, stock 


7 ! 48 I 

3 35 B, 

1 ! 21 
12 [ 13 j' 

32 1 18.50 A- 

- i - I- 


BAT repulses query Braid gives reasons E 
» T n .f™ policics for rejecting Lookers 


3 2.70 

110 1.20 
3D0 - 0.30 I 
40 i 1 i 
105 | 1.40 j 


— (F.l 11.60 


BAT Industrie* yesterday 
repulsed an attempt by dissident 
shareholders to get the company 
to provide a report on its policy 


mStel report - OARP MEE TINGS Bnld Group, the U«so<rt of : ' fnmciuse to compared m.b . loss of 1228,95? 

L^ncourafifiU! T vehicle distributor which is Macclesfield. Looters - Is the in the same 1981 

Ivelminfi^SSrii 8 ™ch."ge ! *gbttog ME a hid from Us preferred r candidate- how- “ untimely -and .unfortunate", 

Thiwfw-id lievelnomPTir m™p. usually held tor the puipjire of con- Manchester-based rival Lookers, ever to continue Braid’s third increase resulted from the bad 

me world development Move- «,derino dividends. oairi ‘ 


encouraging smoking in fiBd dates of boerd meetings to the 


developing countries. 


Stock Exchange. Such meetings ere 


— ; — : F.l 00. BO 


IF. 102.60 
I 


m e ntS 8 |miT'h,lnX 5,d9rin9 Officialind I cations yesterday released d- 

men^ Whose aim is to help the are not available aa to whether the j reasons for' its opposition, 
world S poor in their struggle to dividends are interims or finals and J 1 115 opproituxu. 

escape from poverty,” had tabled ' he subdivisions shown balow an * ^ * "" 

a resolution filing for BAT- to base “ m8l, " ir ° n l8ST yv*r"s timetable, 
explain its policy on expanding 

cigarette markets in developing foST sidiaX. Sonib sSond ‘ w ^ th * m 
countries, on Its advertising prac- Finals: Applied Computer Technique*, 
tices and on . its response to Barlow Holdings, . Brawn Shipley, 


ABN C 
ABN P 
AKZO C 
AKZO C 
AKZO C 
AKZO C 
AKZO P 
AKZO P 
AMRO C 
AMRO C 
AMRO P 
HEIN P 
HEIN P 
HOOG C 
HOOG C 
KLM C 
KLM C 
KLM C 
KLM C 
KLM P 
KLM P 
KLM P 
NEDL C 
NEDL P 
NEDL P 
PHIL C 
PHIL C 
PHIL C 
PHIL P 
PHIL P 
PHIL P 


F.3300: — 

Fjaeo: 89 
F.22.601 100 
F.25I 16 

F.50' 3 

F.32.50! — 

F.25 - 

F.27.50! 8 

F.5a; 8 

F.5S - 
F.56! - 

F.50: — 

F.66 10 

F.15' - 

F. 17.60: — 

F.90. 24 

F.100; 72 

F.l 10] 5 

F.l 20, - 

F.80 13 

F.90 59 

F.100, 22 

F.120I — 

F.l 10! 77 

F.130; 6 

F-22.50: - 

FJ25i 20 
F.27.60! - 

F.22.501 _ 

F.25i - 

F.27.50 1 JO 


89 I 2 
00 , 1.80 


200 ; 1_ 
Oct. 

6 1 4.50 
10 I 7 


6 | 0.20 


5 1 1.40 I 
50 ! 0.60 | 
2 : 9.80 Bt 
32 I 5.70 
10 ! 3.40 ! 


13 1 10.20 
6 j 3.60 


detailed dealership at BuMnn-ori-Trent. 

&■ Braid also, said it bad carried 


winter weather. Braid said., 

A property valuation eommip-. 


the subdivisions sbmmT.baiSw a« A return to profit in the first out major refuxbishmetrts on sioned ahead of Lookers hid 
based mainly on last year's timetable, four months of 1982 and a re- some of its premises^ had' made : showeda surplus aver boob value 
today valuation of Braid’s property capital investments worth- £2m of £965,00ft while other property 

_ ’"J* 11 ™:. F"'Hina Boats. . Nonhem assets means that Looters’ £3.lm oveT the past three- years' and being sold will yield £470,000 — 
^f^ S ^p^ niq _ ttSF&SiS-S rs ^“tite wori^yaiper £124^ more than , bo<^^- 
Bariow Holdings. . Br«w siffi! valuation- off the company, Braid cent m toe same period. ■ - - This gives Brawl s-/ ordinary. 


said in a document to" ' share- It reported unaudited pre-tax ' shares a net asset value . vi 98p.- 
commendations on'smoking m L h ,?* mu8l « fcp; holders. ■ , profit of £34,000. in the four compared with Looters! off* nf 

Shareholders • at -yesterday’s *&£ j°w Braid -also took the unusual m "2£JZ 50p Braid agt'- - ' 

annual meeting rejected the Spaar. . 1 *.■ step -of writing directly to 30 £82,000 profit mi continuing Mr Ken , Martinique,.. Ixmbeis’. 

resolution by a large majority. future dates , Lookera’ shareholders ureing operations. and a loss of £4S,000 managing director, said be was 

BAT chairman. Sir Peter 11 them to vote against' their on discounted activities. TfiEs “not Impressed” with Braid’s. 

Macadam, who had offered to Rials: - July21 board’s takeover plans at an compares with a loss 'of .$47,000 report of profits in tbe firat tour, 

make a report available if the Aipina sort Drinks jun* is extraordinary meetingcalled for in the same 1981 period, of months; Tfie seasonal nature of 

WDA withdrew its formal resolu- Baker Parkins —.. June a* June 16. ' which £11,000 came, ---from cob- the motor -trade means 

flon, did however outline com- 21S2! , !?J Juris . The group revealed that tmuing operations and the rest cannot be taken in. isolation, be 

pany po«(y to the meeting. British BeJ^ CaS,iSg S'21 negotiatiobTwith Ford over a frwi discontinued business. sa id. 

BAT’S tobacco companies con- Crosby woodflaid jurl IS third dealership had been However,, m the six months Since Lookers has no pbms:Tp 

formed strictiy to the laws of Sswick-Hoppor ^j una M suspended since the Looters’ to* March 31. the first half of sell off Braids . assets . - the 

the countries in which they »oMan (Arthur) Junt a; hid. It earlier said a takeover the company’s book year, it made property .' revaluation .Ms . 'not 

operate, and maintain a close w-r^r Juna jj - by inkers would lead to the an attributable loss of £303.170 relevant, he added.’. 

fttalnpiTA vri*h minitiuw »««ixor ana obit June 21' 1 


valuation of the company. Braid cent in the same period.' ■ 


Braid’s -'ordfhar?- 


World Health Organisation re- ^ Bpn,a " ,nd “ 8t d”- -A Cohen. ' b! said., in. a docum«rt to share- 


Elliott. Jamas Rnlay. HIM Samuel, !tCP; holders. • 
Uigh Intereats, Plysu. Rolls and Nolan l 


resblutlott by a large majority. ' 

BAT chairman. Sir Peter 
Macadam, who had offered to 


— — JF.B9.50 


11' F .93.60 


0 

1S.1U 

ou 

75 

13.au 

1.70 

210 

2.30 

30 

0.10 

70 

0.80 

76 

1 


- 

10 

0.30 






- 

40 

0.80 

133 

1 



— 

ISO 

2.20 

28 

2.40 

10 

4.60 


. — 

— 

- 

37 

11.50 

10 

12 

- 



196 

2.90 

13 

4.70 

10 

5.50 







6‘ 

2.40 




24 

7 


— j 

9- 

1.80 

— 



7 

4.80 

45 

9.30 : 

— 

— 

— 

- 

19 

1.60 

— 

— 


1 

40 

1 

— 

— 

— 

— . ! 

— 

— 

3 

7 

_ 

— j 

10 

16 

— 

— 

— 

— 


dialogue with ministers and “ Jun ? 21 

officials. Sir Peter said. ■ - . " • 

Promotion of BAT products • _ 

reflected • local ■ practice ' and gress in all lie company’s iktsi- 
govemment policy, and the com- nesses this year, hut did not 
pany compHed with advertising expect the overall picture to 
codes of practice where they show quite the same -excellent' 
exist, be added. ■ rate of improvement as was 

' The board said it foresaw pro- achieved in 1981. 

Ottoman looks to hive 
off network in Turkey 

THE TurkislMregistered Ottoman hidden reserves, 6 as .been 


Ever Ready 
moving plans 
redundancies 


Liberty Life pushes up 
Sun Life stake to 24% 


„ *», ' Transatiantic liisuranee Hold- in London yesterday that he -still 

IJT fAn.iSrt i“Ss- the European arm -of regarded Sun Life as a trade 

batten^ maker recently acquired jj berty Life Association of investment and the holding as 

^ T nT 7a l H Africa has acquired a further part of Ubertyls plans! to eecpand- 

an d o Plans to move its head gOO.OOO shares iin Sun life Assur- its insurance and financial 

Society. This brtnfp ins involvement - outside South 
tecbmca! rentte at Tottenham t to hcrfding 13.74m shares— 23.85 Africa. He indicated that liberty 


T anfi eld Lea in County Durham. 
• 1 This move, which. ^should be 
^been completed by the end of the year. 


per cent of the equity. 


couid acquire between 25 -and 30 


Liberty IM « AfWo, fl,e 





TOTAL VOLUME IN CONTRACTS: 4629 
A=ABketi B=Bid 


. - - t t ; , — — — r*“. “ *Mxv a iwia together employ wu |KU|/ie uui iuk »Ku ta ia ouu uut »un;e 

l ° ld >0 ^o?don yesterday. ^ - under Turkish law in which only 250 will be offered jobs at October 1980 when it acquired 011 :the ° oarti qf 

'Ihe bank;. -which has been the Turkish investors would hold a the north-east plant. a 10.2 per cent s^te mostly Su ^ T . L 1 r e 4, r 

centre of some ctmtroversy m majority of the capital” with Ever Ready also expects It will from the Kuwait Investment .iE!: L 
recent years over the size of Its Ottoman retaining “a substantial he forced to make half of the Office. Ufa, confirmed 

- . — ii _ _ _ that T7iA nn&Pn non non Tift 


minority. 


300-strong workforce 


A 


H 


Public Limited Company 

Interim 




For the 28 weeks ended 10th April 1982 


The bank’s annual meeting was Cramic Engineering subsidiary Honaia uoraoc i. cnairman or formal oisqussions with 

told that these talks bad made redundantT ^ Of liberty, Life pf Afnca, said- Liberty Life of Africa. . ■; . 

M favourable progress” but have ni T • ’ ■»-*- • - - • -: •• - ' 

rj M rMched * “ nci “ Eiectromc Universal Insurance 
-.Wa tt Rentals’ EGM . . _■ ^ V 

whirtha^'Sf T ^'. rt bank - fuh <*«■ document, of aims for general market 

wi.l?«i^^Sf^ rsubsl t dianes ’ «groed bid by Electronic , . “ 

Rentals Group for London and Hill Samuel Group and Petro- Tbe ao&arised share capital Js 
ve j ^ m Montrose Trost were sent out to fina Group have established a £10m in 10m shares of £1 of 
( “ >es . n . ot fW * oduce COn ' shareholders yesterday, general insurance company — whirti 4.5m have been issded — 


that tiie board Had had no direct’ 
Mr Donald Gordon, chairman or formal discussions with 
Of Liberty, Life qf Afnca, said- Liberty Life of Africa. . 

Universal Insurance 

• • • • . .' • r- - . 

aims for general market 


so !i?® led , Acceptances nmst -be received Universal Insurance Company — 3m ftrUy paid and 15m lp-paid. 

i ne accounts do state that not later thm 3 pm on Wednes- to transact direct non-fcfe and The shares are held equally 

providing for tax and day June 30. reiiKurance business on the between HttL. : Samuel ; and 


yesterday, general insurance .-.oonrpany — which 4.5m have been issded — 


constituting necessary provisions 


extraordinary 


reu&urance business on the between HILL. 
general London and ' interaction^ Petrofina (UK). • 


Samuel 


0ut _. 0 ^ . revenue and reserves ” meeting of London and Mon- markets from June 14 The com- Petrofina has a znunhet of 

PrcffkL J° crea ^f j. by - root trose fftnst will be held at the pany has been Heensed to under- insurance activities, including' 

to £3. 1 3m in 1381. P Sc O Building. 122. Leaden- write all the major dasses of .various captive . insurance opera- 

hall Street, London, on Friday direct • non-life - insurance and turns and broking companies in 

TVaHthi . JuIy 2 at 10 €jn - A” °f both treaty and facultative re- London and the- continent. Thin 

1 v VI l VII • ■ the Electronic Rentals Group insurance woridwide. . - is the first venture *by Hall 

|tt i ' be^held ^ at the Great IniteaHy. U1C will specialise Srcnuel into . direct mm-Iife 

Warburg Eastern Hotel. Liverpool Street, in commensal ■ property and- insurance underwriting, Ihough 

O London, also OH the same day MKira-ltv risks hut .tn.’lt has incursw^ hmWTiff anH 


hall Street, London, on Friday direct non-life - insurance and turns and broking compames in 
July 2 at ID era. An EGM of both treaty and facultative re- London and the; continent This 
the Electronic Rentals Group insurance woridwide. .is the first venture by ra»i 

jdl* be^held _ at the Great IniteaHy, UIC will specialise Samuel into .. . direct non-life 
Eastern Hotel, Liverpool Street, I& commensal.' property and -insurance underwriting, though 







DISTRIBUTIONS to the un- I at 11 am - 


London, also on the same day casually risks, but ‘intekfe - to - it has. in6urance broMng and 

fit If 5TY1 1 l a. ->*- J- ' - -• 3 • a. A '_4 ‘ ' * ■ r. . 


28 weeks to 
10A82 


28 weeks to 
11.4.81 


Year to- 
30A81 


£ millions £ millions 
' adjusted 

- (Note 1) (Note 1) 

717.8 1,331.7 

122.8 380^ 

840.6 . 1,712.6 


secured creditors of the Norton 
Warburg group of companies 
are likely to be “very small," 
Che joint liquidators of the 
crashed investment management 


EXCO TAKES - 
CONTROL OF 
RFA GODSELL 
GodseE Australia, a. whrily 


broaden its scope to otber roajor underwriting agencies within its 
classes, inchidtog marine .and group as well as a' life company. 


HiH Samuel Infe. 


operation say in a letter wiiidh {.owned subsidiary of Exco Inter 


60.6 

63.0 

128.7 

(3-5) 

(05) 

24.7 

57.1 

625 

153.4 

14.0 

11.0 

202 

-43JL 

515 

133 2 

124 

' . 13.5 

35.0 - 

302 

38.0 

982 

04 

05 

0.1 


Sales to enstomers (Note 2) • 

Brewing and drinks 
Leisure 

Trading Profit (Note 3) 

Brewing and drinks 
Leisure 

Cost of borrowing (Note 4) 

Profit before taxation 

United Kingdom and overseas taxation 
(Note5) 

Profit after taxation 

Attributable to outside shareholders 

Preference dividends 

Earnings available for ordinary 
shareholders 

Ordinary dividends paid and proposed 


Ordinary dividends paid and proposed - 
p/share 

Earnings per ordinary share (Note 6) 


NOTES: 

1. Acqufshion of Coral Leisure Group Limited 

Coral sales and trading for the first quarter of 1981, being pre^cqoisitioii, are not ioduded in the 
comparative figures. 

2. Sales 

The pre ssur e on consumer spending, the severe weather during the winter and the industrial 
dispute m Bass North have depressed sate by volume. 

3. IradingProfit 

(a) Trading Profit is arrived at after chargmg/(aediting)tiiefolknring items: 


has been sent to all known national, has increased its bold- . +"|1 fiXni OV UCJifSOfl 

creditors ' . lug in R. F. A. Godsetl Bty, based • *V.UOIU UCiUb. . A VW1JV “ .. . 

Referring to the deficiency in Sydney, to 57$ per cent from Dares Estates has exchanged’ T ifitlOTO5l , h- 

against book values of £4.3ra the previous 5050 shareftFoWing cocSSs .iAIUgUMtt* 

which was estimated at a meet- behveen R. F. Arthur Securities orgnerties at Walsall and 'at the Westminster Press, a wholly- 

ing in March last yea r^Mr and C^eU Australia. Wo&bridge industrial 'estate, owned subsidiary . of .‘Pearson 

James dement of Robson Mr John O NerU, a director of wtmboroe Dorset for l^mgman has bought two free 

Rhodes and Mr Gerhard Weiss ficco, says it fe intended that consideration of some Weekly magazine titles in 

of Cork Gully say Chat “realisa- the company wtfl start an inter- £6 80000 It is antiriiSed JacksooviUe. Florida for $2.1m. 
tions i are expected to be less and national money broking service win produce Westminster, through its West- 

toe deficiency greater without “ satisfactory contributions ” to niinster (Jacksonville) Inc sub- 

taRans ^to account expenses or second-half profits and that ridiaiy, wiU acquire Dollar Saver 

toeposs&illty of claims against ^ pf in respect of the Shopper’s Guide, with 100,900 i 


Dares Estates’ 
£0.68m deals 


U.S. expansion 
by Pearson 
Longman^ . 

Westminster Press, ' a' wholly- 
owned subsidiary . of .‘Pearson 


DiwV|»jg 


. 'Australia.’' ^Stye^ oStS eSarg^d copi«~ we e kTy7’ and "We^ride 

VICKERS DA' COSTA’ capital wil+ be at leastetSvSeni St or y. 60.0M copies, 

year off ffle liquidations in OPfT.FAR TAKFOVFR to the 1.25p total paid for 1981. These publications together reach 

realising available assets and lAIEUVtK Ji T; , „ . - most hous^iolds in the city 

identifying preferential and . Following the cessatioxx-of trad- The Walsall purchase com- Westminster said. ’ 

unsecured cflakns against the ing of Carr- Sebag and Co, prises shop units, . a " super- The company is associated with 

companies', has been slow and Opdear — a major clearing market and lock-up garages. -The jj r Bruce r S»p=<n a Chicago nub- 

laborious,” they add. agency in the London Traded lease, valued at £490,000. jisher. in these acouisitions 

Creditors’ meetings of the Options Market— has been taken is already owned by Dares, the which also include an interest in I 

four companies — Norton War- over by Vickerf Da Costa and the a«|uisition b^ng the freehold T printing S jSSxtiy oTOe“ 


current year on the enlarged copies weekly, and Westside 
capita] wtit be at least equivalent Story, which sells 60,000 copies, 
to tbe 1.25p total paid for 1981. These publications together reach 


burg Holdings. Norton Warburg, services of cl 
Norton. Waiburg Investment broking will 
Management and Norton War- interrupted, 
burg (Bristol) will be held on formerly a j 
Jnue 21. . Vickers Da Cos: 


services of clearing and floor- interest Purchase price, with other focal publishers 
^ kln 8 ‘continue un- The purchase Involves down 

interrupted. Opclear was t“* issue of 2^o3,945 ordinary payments of *375 000 and future 

v°S erl ti r .p entu r>, 0t dSS fMinpS' the TCDd0n obligations of^SL^OOO over^p 
Vickers Da Costa and Carr Sebag. Helkay (Holdings). . to‘ 10 years. Westminster 

Tbe other purchase (£280,000) (Florida) purchased the Manatee 
| will be satisfied by, the Issue of Group of Bradenton, ip 1980 and 


LONDON TRADED OPTIONS 

Juna 9. Total Contract* 1,192 Call*. 787 Puts 405 


28 weeks to 
10AJ8Z 


C fldDOB ~™_™ -MUlilVW 

Depreciaboit .27.7 24^ 49.6 

. Surplus on disposal of fixed assets. 

investments and subsidiaries '. (45) (05) - (7.6) 

Provision for employee share ownriship 

scheme 13 15 3.8 

•(b) Historically a greater pr o por ti on of the Group profit has been earned in the second half of 
the year. As reported at the Annual General Meeting the effect of consolidating the former 
Coral activities, in particular Pondn’s, while deceasing the first half will macase the 
proportion of profits earned in the second half. 

4. The cost of borrowing is increased by the inclusion of tbe interest for 28 weeks (1981 - 17 weeks) 
on former Coral borrowings and overall higher average borrowing levels. 

5. Taxation has been provided at 30.0% (1981 : adjusted to 263%) of profits before taxation. 

& An interim dividend of 2.66|p per share (253p) an tbe ordinary shares will be paid on 26th July. 
1982. 

7. Earnings per ordinary share are calculated by dividing the earnings available for ordinary 
shareholders £29. 6m (£37 Jm) by 321. Sm (300.6m) being toe number of ordinary shares of 25p 
in issue at the end of the period and ranking for diridrod. 

8. During toe 28 week period ended 30th April, 1982, capital expenditure was £59.7m (1981— 
£61,6n). 

9. The above figures have not been audited. 


28 weeks to 
11.4.81 


Year to 
30.9.81 


adjusted 

£ millions £ millions 


BP (c> I 
BP ip) 

CU (cl 
CU ic) 

CU (c) 

Cons. Gld (c) 
Cons. GW lei 
Cons. Gld (cl 
Cons. Gld lei 
Cons. Gld ip) 
Cons. Gld (p) 
CUds. (cl 
Ctlds. (c) 
GEC (e> 

GEC tc). 

GEC (o) 

Gr*d Mat. (eH 
Gr’d Mat. tc* 
Gt-d Met. («| 
Gr*d Met. <p^ 
Gr*d Mat. (pH 
Gr*d Met. (pi 
Grid Mat. (pH 
Grid Met. (pH 
IC1 (O 

ICI (el | 

ICI (c) | 

ICt (pi I 
ICI (p) . 

ICI (pi 
Land Sac. (o) 
MKs ASp. (cl! 
Mks A Sp. (OK 
Shell (cl 
Shall (pi I 
Shall (p> | 

Barclays (c) I 
Barclays (c| I 
imperial (c> I 
imperial (d | 
Imperial la) • 
Imperial (p) 
Uimo ic) 
Lasmo (o) 
Lcnrha (e) 
Lon r ho (ct 
Lonrho (o) 

La nr ho (o) 

Lon r ho ipj 
PftO ic} 
PfcO (Cl 
Racal Ic) 
Racal (ci 
Racal ip). 
Racal (p) . 

RTZ (ci 
RTZ {« 

trrzipi • 

RTZIpl ! 
Vaai Rfs (ci . 
Vaal Rfs. IP) ] 


8 2 

5 — 

10 — 

4U 21 

US — 

32 1 

14 1 ' 

5 — 

2 — 

7 — 

25 2 

2is 

1 — I 

110 1 

67 37 

33 75 

65 | 2 

36 2 

31 5 

18 ! 26 

4 ! — 

4 t lO 
7 ! - 


— }318p 
13 

. — jl3fip 
6 _ 


92 16 

67 | 6 

69 I — 
39 14 

36 | - 

24 I 24 

'I I - 
12 | 20 

is j = 

26 1 

a 2 


2 , - 

- | II 
20 


- 84p 

— 049 p 


46 = “ 7P W 

43 10 ' Z 

30 - ” 

12 10 Z 

12 - ” 

16 — " 

Z9 — 

66 - 332 p" 

38 i — _ 


• 60 I 22 

I 1 ! 9 I 

: 2 j 26 I 

,180 16 I 

1 - I 28 | 

November 


S3 — 278p 

22 3 16Sp 

9 7 „ 

26 - WfiBp 


W I W 

February 


460 I 

37 | 

5 I 

60 1 

" 

68 

_ 

47Sp 

500 

12 1 


27 

25 

42 


80 

20 ! 


28 

30 

_ 

- 

»8p 

90 1 

121*1 

— i 

17 | 



21 

2 

100 

6 

2 i 

9Xf| 


133. 

12 

99 

100 
330 1 

4ld 
26 1 

re 1 

Bill 
38 i 

30 

2 

91* 

56 


zyjn 

360 ; 

13 

12 

28 | 

6 

37 

3 

M<p 

•60 

70 

10 ! 

4 

_ 1 

5 s i 

11 ! 

8 

20 

12 

13 

71* 

10 

B7p” 

80 

1 

.29 

21b 



Si* 

B 


.90 

U 

BO 






’’ 

70 | 

8 

- 

61* 

20 . 

a 

_ 


130 

21 

' 3 

27 

— 

_ 


149p- 

160 t 

5 

- 1 

lO 

1 

13 

— 


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1^76,055 shares to the .'vendors, has since enlarged the group, 
Ankers and Rawlings (Develop- which has weekly advertising 
ments), with tbe balance of. publications and monthly 
some £46,000 being paid in cash, property guides. 


Tyndall Life takes on 
UK assurance market 

BY ERIC SHORT 

The Tyndall Group, a subsidiary ence. A force of 100 full time 
of Globe Investment Trust, has agents Is planned by the end of 
launched a new company Tyndall 1982. The company will also seek 
Life, with the aim of becoming: business through the. professional 
a major force In UK life assur- intermediary market. 
anoe * Among the innovations intro- 

Tyndall moved Into life assur-. duced by Tyndall is the Star 
ance in 1965 with the formation Service - . .(Stockbroker Active 
of Tyndall Assurance. But this Review Service). Tyndall has 
was mainly to provide another drawn up a list of stockbrokers 
outlet for its large and growing willing to manage the bond port- 
unit trust operation, though, it folio of clients and switch 
pioneered tbe managed fund life between the various life funds at 
concept wish its Three-Way fund, the appropriate time. With other 
Over the last decade, growth companies, bondholders have 
in Tyndall’s life business has to find their own investment 
been overshadowed by the expan- advisers for switching. . . 
sion of its onshore and offshore 1 ' ■ — 

unit twists business. . - \ h ,, ' 

Tyndall intend to market unit ‘M J H ^ Nl0*flHlU3 
linked life and pension products V " l_ U ' n - HlgIIUIIg 
aggressively using the new com- ! yr nb i -w,VT7„- i ~Z — ^ 
pany as toe marketing force. 27/28 Lovat Lane London EC3R.S E& 

Tyudall. Assurance' will still ,o«~> 

b^^b^ed^beS?""!^ “imTm ™ ’ 

^are^dmioistrative ,| ’g ^ K i 

A completely new range of life 33 Armiwge s[ RViodB*:" ” 

fo-odacts has been designed 214 187 Bunion hiii -..IT.',- ; 

incorporating the latest develop- ™ cfO* Conv ' Prer -- 1 

meats, including Maximum io? ^bi — 7“.- : 

Investment and Variable Life I3i 97 Frank Horsd? 6 ?".... : i 

plans. . : 83; 39 Frederick Parker ' 

The managing director of the - ,S S ^ ■ 

new company is Mr Derek Jones ; iro S' J 

who has worked as the Liverpool ns * Jackson Gr£l?’ — ‘ ] 

area director for Hambro Life, ■: tffl ire Jamee Burroiigb i 

while the deputy chairman is Mr • ®4 231 Roh«ri jenkma 2 

Dan Dane, formerly marketing ,11 5"^ non * ‘‘A’'.- 

“ T ?f UJ, WEJS-r,— 

Hamoro Life. . so. gb Twinioek i6pc uls_ 

Tbe main sale marketing effort ; ® ■ .Unlock Holdings..— • 

will come from a direct sales 

force, an area In which thdse two _ 2,2 W- s - Yeatd * ,. J 3 
men have considerable expert- ; - " Pritss now svsiisbicdr 


i 





partner in vn* 
rech ahd jSnn- 

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resear 

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ch team.' - ■ 

■* 

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n me propeny, 

director of toe 

ESC 

mm 


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INSTT 

Sir 


mui 

senior 



MM 



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\ main a 

a 

Benke wili re: 

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1981-82 
High Low 


Compiny . 


- - . - Grow Ylslcf- Fully 
Print Oarngo d4v.{0) % Actual vfit 


■75 82 Ainprung “* 77 

;S1 33 Arrmtage & Rhode*;—" Ja 

214 187 Bardon Hill — ..V 214 

2£8 100 CCLIIpcConv. Pref.... 10a 

25 . 240 Cindico Group 265 

10* 61 Da bo rah Services (i 

I3l 97 Frank Hontll 130 

: 83 ; ® Fradarick Parker '. ‘ TR 

-B .48 Gaorge Blair gj 


113 94 Jackson Group' 

T30. 108 James Burrough 
334 231 . Robert Jenkins 
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m Financial Times Thursday June 10 3 

>1;- i* . ' * 

■§??'"* "**■*5 — «~v -■ • -r • . ...... 

Caapat^andMarkflts 


1982 


COMMODITIES AND AGRICULTURE 


-at. ■ 


'•t ^ v 


a, 


Br *ad|* , 

'•’Ever 

i* ;i K c , ®fiW* 

rTas£«s 

perv ‘ n aiiy»^ 

T^i-. u, 8s W 

“ifiVisi 

" a «r L l %S! 

ar * of f. j SB* 

T - v 'Safe ,. 

appoiaieJlY'Jik 

« l ISSSf* 

c?"2S& 

^agemeui £ 

» oker«. tneithJ* 
r Pfsfessiooij 

W 

holdings- 
Wr SDtfe/ 

a - a>SL«taa; aa»' 

{e ^'-SuanegiJ 
1 ’e”eury ^ 
Qua. £nac»(fi nJ 
j RWr *ss dmsSj 
“•* a ?P»»Kl4 (Hi 
appaiKcea,** 

nio Warner iai k 

, r \ r ‘“? Jobs 

'■■■ tt.N AM) BK 


below 

£100 mark 

By, terry farvjr-x.' 

RAW.’ SUGAR prices ■ on the 
London - futures- market fell' 
yrattixUjj, , after, the . daily price 
lufTb^ep set at £99 per tonne in 
the*.m0rah)& & Jess than tiie 
prpiSqo^- day's fex. This -is the 
first^, tUse :that the LDP has . 
f alien . ta*low the £100 mirk; 
sinc^ A*SP St- 19*8- . • - : 

Accord ! jsg to dealers in 
London, prices drifted down-, 
wards due to thin seHing in a' 
bearish, mdr^ei- In the UR., 
v^erp-eug^ futui^dropped to 
nejv'r«.iA*S‘-4B' . ean? traduUk. 
broSera . Warned- v the fall on 
sbwgtbel^grrO^-the -dollar and 
the large Strath African safe st 
a^cB&cfcidt 'price" lii Japan. 

*Xt ;the tiuirnial /’meeting r of the 
A^&c^flpn* of the- Surar Pro* 
duqt? .Tndtistries of .the EEC 
rCAb£i$50>' the decision to 
iriCrdaseHsugai* prices by 10 per 
r&ftt.' frftlP . itfftft - - month was 
stJionar^p^criticis^A’ ■ . ; 

♦£5Efcf *s}>erts' estimate, that 
production will 
fa/rr-to'- -U ,75nj. .tonnes (white 
vaJsfe> -from the • 15.02m last 
ye?? Teports Reuter- 

G&sblftjLe futures 
plan 

> 8y'Ow , ;CtonTmo4£ti0r Editor '. 
X/’FU'TIIRES contract for gaso- 
line *t petrol) Is- to be introduced 
op’lljO International Petroleum 
^ in ’ London early nest 
rding^to Mr Robin 
... • .chairman: of the 
Exhfiaifge-. - Mr Woodfiead said 
np^deftni fe -launching .date- had 
been.,dedde4.yet\ hot meetings 
will' bk.h£Ut in the -main gaso- 
liae itradajig countries — Switzer- 
land,- * Germany, - - Holland and 
SeaKtidavte-^ preparation for 
introducing. - the.-, sew futures 
contract Sarlif in J9M. 

^Tne. ' success 'of the ' London 
gqsjoll fdtyres market, launched 
last' April, ' has encouraged plans 
to bring" in Aew contracts for 
other oil-' products.: 

#^ddhdiui -spot oil prices, which 
tiy^-^gbagcial Times started 
quoting .this week, are obtained 
f^onva uumbcr of different mar- 
ket* sources. .-The range Quoted 
inqoppmaftg ; t the ; lowest and 
highest prices ofcaf; tual business 
trtffiacfed, riot nominal _ quota.- 
t i«K: j 1 K 



BY JOHN EDWARDS, COMMODITIES EDITOR 


'ANOTHER aft in ti&e European 
.zinc producer price, from 9860 
to 9800 a tonne, was announced 
yesterday, in - Frankfurt by 
Metallgesellschaft, the big West 
German smelting group. The. 
move is likely to create further 
confusion ' in the zinc market, 
where some producers have so 
far : maintained nominal quota- 
tions of 9900, while values on 
the London Metal Exchange are 
well below 9700. - ' 

The ca^t price yesterday lost 
£11 to £387.5 a- bonne— equiva- 
lent to 9687 at the current 
sterting/dollar exchange rate.- 

Mertallgesellschaft, and the 
-other leading West German 
zinc smelter, Preussag. cut their 
zinc producer price quotations 
at the end of March to $860 only 
a few weeks after raising -the 
price to. 9900 to come into line 
with other producers. 

The. West German smelters' 
are keen to adjust their quota- 
tions to realistic market levels, 
since they rely on bought-in ore 
concentrates, whose cost is 
based on the producer price 
quotation. Integrated zinc 


producers, owning both mines 

and smelters,, prefer .to, keep 
"their official quotations up, 
even though they are forced to 
give discounts to remain com- 
petitive. They argue that current 
price 'levels are well below the 
. cost of production and that 
reducing them still further does 
not stimulate extra sales. 

However the fact remains 
that demand for zinc, in common 
with other metals, is extremely 
poor and supplies remain mom 
than adequate, in spite of heavy 
cuts in ouptut Metallgesellschaft 
claimed recently that any 
further production cuts would 
only result in heavier losses, so 
instead It is trying to remain 
competitive. Preussag said 
yesterday it was studying the 
situation, but it is likely to be 
forced to $800 as well. 

Other producers, particularly 
integrated companies, may 
delay any decision for a longer 
period in hopes that the market 
may recover. 

Howeyer LME zinr values fell 
sharply yesterday, in spite of 
news that a strike has started 


480 


£ py tonne 


4GO 


440, 


420 


400 


ZINC 

GoshMetof 


3BQL 



J F M A M J 
1382 


at Noranda’s Valleyfleld zinc 
refinery in Quebec arid a decline 
in U.S. slab-, zinc stocks held 
by smelters during May. Earlier 
this week Asar&o- decided to 
rescind a 3 cents redaction in 
its U.S. domestic zinc selling 
price, when other producers 
failed to follow. 

Aiding the downturn in zinc 
yesterday was renewed depres- 
sion in other metal markets, led 
by copper. The higher-grade 
copper cash price dropped by 
£21 to £732.5 a tonne, as the 
market "Vas hit by persistent 
selling, mainly from speculative 
sources. 

Meanwhile two more U.S. 
copper producers, Am ax and 
Copper Range, announced 
further output cuts because of 
poor demand. 


Book calls for pesticide ban 


BY ttCHARD MOONEY 

NEW PRESSURE is put on 
the Government today for the 
outlawing of the. controversial 
pesticide 245-T with the publi- 
cation of a paper-back book en- 
titled “ Portrait of a Poison— 
the 245-T Storp.” 

The pesticide, contains dioxin, 
used in the infamous Agent 
Orange* defoliant during the 
Vietnam war and the toxic ele- 
ment in the Seveso accident .in 
Italy. It Is already banned in 
eight countries ;and by 80 of 
Britain's 122 local authorities. 

But so -far the : Ministry of 
Agriculture has answered calls 
for its banning in Britain with 
statements to the effect that it 
is safe if used in accordance 
with the published instructions. 
“The co-authors of the book, Mr 
Chris. Kaufman and Ms Judith 
Cook.' claim, however, that in 
practice there is little chance 
of it being used as recommen- 


ded. . 

At the lau nc h of the book at 
the House of Commons yester- 
day this claim was supported by 
Mr' Jack .Boddy. leader of the 
farmworkers* section of the 
Transport and General Workers 
Union, and by Mr. Norman 
Buchan, Opposition agriculture 
spokesman, who promised that 
245-T would be banned once 
Labour was returned to power. 

He also supported Mr Buddy's 
call for the winding-up of the 
Government’s Pesticides 
Advisory Committee (PAC), 
which has the responsibility of 
vetting toe safety of pesticides. 
Instead this task should fall to 
the Health and Safety Commis- 
sion. which includes worker 
representatives as well as 
employers and Government, 

Mr Kaufman agreed that Mr 
Peter Walker, the- Agriculture 


M i nis ter, had been “wrongly 
counselled ” by the PAC. Apart 
from agricultural users, the 
compound was widely used by 
domestic garduers he said. It 
was . contained in at least 25 
products, one of them manu- 
factured by Chipmans of 
Horsham, Sussex, whose chair- 
man is Mr Denis Thatcher, the 
Prime Minister's husband, he 
noted. 

The authors admitted that 
they bad no direct evidence of 
the dangers of 245-T but claimed 
the circumstantial evidence was 
“overwhelming.” Ms Cook re- 
ferred to an “epidemic” of 
miscarriages and cancers in a 
small Somerset village where 
it was found the work of the 
husbands in all the affected 
families involved the use of the 
compound. "I 


Strawberry 

crop 

warning 

By Sara Evans 

STRAWBERRY growers in Cam- 
bridgeshire and West .Norfolk 
have warned that thifi. year's 
crop for sale to processors will 
be much' smaller than' usual, as 
Iitle as 2 to 3 tonnes per acre, 
instead of a normal 4} . to 5 
tonnes an acre. 

The Strawberry Growers*. 
Association in Wfebech, Cam- 
bridgeshire, centre for straw- 
berry supply to the canning, 
freezing and jam-making indus- 
tries. blame the serious shortfall 
on a hard winter, followed by 
drought, and a disastrous frost 
on May 4 this year. 

The association is advising its 
members to hold off selling their 
crop as long 'as possible to' try 
to get as near to the break-even 
point for the crop of £513 per 
tonne. It points out that the 
food industry has Utile stocks 
of strawberry products and that 
supplies, of Polish pulp are 
known to be erratic at present 
Many growers, faced with 
declining prices for their fruit 
over the past two years, have 
reduced their acreages of frtiit 
for processing, and the harsh 
weather took a greater toll on 
older plants than it would have 
on younger strawberry beds. 

The Wisbech growers are the 
main suppliers of strawberries 
to the processors, with 75 to 80 
per cent of their crop going to 
the food industry. 

Record U.S. 
wheat crop 

B y Our C omm o di ties Staff 
WINTER wheat production in 
the UB. for 1981/82 could 
reach a record 2,l5bn bushels, 
according to private crop fore- 
caster Mr Conrad Leslie. This 
figure compares with last 
season's record total of 2.Zbn 
and is marginally higher than 
estimates already published by 
the U.S. Department of Agri- 
culture. 

On maize (com) acreages the 
estimate for the current season 
is 79-52m acres, down 4.7m on 
last year's level, and more than 
5m acres less than the USDA 
February estimate. 

For soyabean, Mr Leslie fore- 
casts acreage at 70Jfcn, up 25m 
on last year, and 1.4m above 
the USDA February expecta- 
tion. 


SIXTH TIN AGREEMENT 


Producers ready 
to go ahead 


BY WONG 5ULONG IN KUALA LUMPUR 


TTN PRODUCING countries, 
led by a reluctant Malaysia, are 
expected to tell. a crucial UN 
sponsored meeting in Geneva 
today that they are prepared to 
enter into the sixth Inter- 
national Tin Agreement, even 
though nearly half the con- 
sumer members of the fifth 
agreement may not be joining. 

The meeting is being called 
by the UN Conference on Trade 
and Development (Unctad) 
because so far 82.2 per cent, of 
tiie producers and only 50J. per 
cent of the consumers -have put 
their signatures to the sixth 
Pact, when at least SO per cent 
support from both sides is 
ne&ied for the agreement to 
come into force definitively, or 
65 per cent on both sides for it 
to operate provisionally. 

Those who have already 
signed the sixth agreement will 
now decide in Geneva whether 
the Pact should be put into 
effect, definitively or pro- 
visionally, among themselves, 


•r call for fresh negotiations. 

According to Malaysian 
officials, Malaysia had originally 
wanted to call for fresh nego- 
tiations to put forward tougher 
producers demands, but was 
persuaded in Indonesia and 
Thailand at e ministerial meet- 
ing in Kuala Lumpur in May, 
to give tiie sixth agreement a 
chance to prove its effective- 
ness. 

The producers' derision to go 
ahead with the sixth ITA is 
based on th^ following reasons: 

If the Tin Agreement is to 
be wuund up, the 35,000 tonnes 
of the metal with the buffer 
stock would have to be liqui- 
dated and returned to members 
proportionate to their contribu- 
tions. Such an action would 
create, chaos on the already 
depressed tin -market even 
though the buffer stock will 
retain its holdings for a two- 
year period. 

The fifth Tin 'Agreement has 

been an unhappy one, com- 


pared with the previous four. 
Some producers feel that nowi 
that the two main antagonists 
—the U.S. on the consumer side 
and Bolivia among the pro-j 
ducers ranks— are not joining,' 
the agreement could assume a 
more harmonious style, con- 
tributing to speedier and more 
effective decisions. 

Apart from the U.S., the two 
other' large consumer groups, 
the EEC and Japan, have shown 
political will to take part 
Finally, those countries which 
have not signed the Agreement 
yet have until June 30 to indi- 
cate their willingness to join. 
Those who have not signed 
include the Soviet Union. East 
European countries. Spain, 
South Korea and India. , 
The Soviet Union joined the 
International Natural Rubber 
Agreement on the very last day. 
It might do the same for the 
Tin Agreement. However, pro- 
ducers will not issue any more 
appeals for consumers to join* 


U.S. takes a hard line 


BY BRIj KH! NOARIA IN GBTCVA 


THE PROBLEMS confronting 
tiie proposed new tin agreement 
stem partly from a bard line 
position against it by the U.S. 
Administration, and partly from 
producers' determination to get 
an agreement which protects 
their export earnings by more 
effectively regulating markets. 
Real prices for third world com- 
modity exports as a whole have 
fallen by nearly 30 per cent an 
recent years reinforcing tin 
producers fears that failure to 
take firm action will further 
erode their earnings. 

The UR. position has caused 
considerable surprise and dis- 
appointment The producers 
consider they bent over back- 
wards last year to accommo- 
date U.S. demands for a total 
50,000 tonne buffer stock which 


was considerably larger and 
more expensive than that re- 
commended by their own advis- 
ers and by officials at Unctad. 
The stock is made up of 30,000 
tonnes directly financed in equal 
parts by consumers and produc- 
ers, and supplemented by an- 
other 2D, 000 tonnes paid for by 
loans. 

Yet the UjSL which for the 
first timp entered the current 
fifth agreement, decided to drop 
out of the sixth pact saying 
that it had “deep and sliding 
concerns about several aspects ” 
of the accord, particularly the 
buffer stock's role and its fin- 
ancing. 

Recognising the fragility of 
the compromise underlying the 
tin accord; it was agreed that 
it could be enforced provision- 
ally starting 1 July 1 provided 


that it were ratified by coun- 
tries representing at least 65 
per cent of total consumption 
as well as production. For de- 
finitive operation the shafts 
must reach SO per cent. j 

Efforts are being made tot 
entice the Soviet Union, which' 
takes 9 per cent of total im- 
ports, and smaller countries like 
India. Romania and Spain to 
enter the accord to bring the 
proportion of acceptances closer 
to the 65 per cent mark. But 
Soviet entry is considered un- 
likely. 

At .tiie same time doubts, re* 
main about the sixth accord's 
effectiveness if it were to be 
operated without the U.S. espe- 
cially because of the U.S. dec!-, 
slon to sell tin from its strategic! 
stock pile. 


ex Harrow*:. f» 

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ars t* follow St! 
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* $•;■«:«* 3 

’ ^ -v> :or cs ^ 

' ' "" *.*, 

;.V‘; J r«ie er i , B 


LONDON oil 

SiV- 

SPOT PRICES 

CABbfOttr 2 FpB'3Sp«rltarr*ir 
N 6^KS«a {Fikti*s) J34 .IS 

AfrtcriKJBotmV mnl35.PO-35.7Bf-.18 . 

— * — ~3» — »• . - . — •. ’ 

PBQOUCT8— North' WW* Europe 

■ . ' ...y t . , IS par tannn) 

PiWWtmfji«i«oilnM :: * , l5-577 {-1 ■ 

' 165-1?D Pi " "” 


GAS OIL FUTURES 

.The market op&oad stronger but fell 
back ki ibln conditions as the physical 
market, affected by the dollar's 
- strength, .' ramamad. \ quiet and 
unchanged. Now York's . strength 
Steadied pries*, which then eased back 
on the close, reports Premier Man. 


BRITISH COMMODITY MARKETS 

BASEMETALS 


AMERICAN MARKETS 


Month 

Yeat'day'i 

OJoeo 

+ or 

BusliMaa 

Done 

June.; 

July- 

August-..- 
Sept. — 

-8UA- 

892.00 

894.00 

893.00 

—1,25 

r-0.75 1 

+0J6 

4-0. 75 

U8J98IJD0 

moo-Bito 

i2flS.75-32to 


296.00 

— OAO|2S7 AB-8S.76 
+ QJtB288to-B7Jja 
-OJBl — 

Nov.- 

896.75 

298.75 

Jen-.-.-. ... 
Feb 

300.60 

308.00 

+Oto 

-2,00 

— 


COPPER VALUES fell to their lowest 
levels for 3*, years on the London 
Metal Exchange following further 
speculative selling and long liquida- 
tion. which lowered three months to 
£754 \ before • a cloae of E766. Zinc 
dropped to £387.75 following the pro- 
ducer .price out by Metalf geaeU eschaft. 
while*' Lead was finally £297.5 . T in 
dosed at £6,585, Aluminium ax £S$25 
end Ntefcet at £2.930, 


, aum. 1+ o*T pjm. i+or 
COPPER Official — Unofficial — t 


.Turnover: 2^476 (2,167) lots . of 100 
tonne*.. 


G 0 L,OMARKETS 

' t Gold l 'felL 52. an ounce from 
T^6sdayVfeIqse In the London, 
bullion market yesterday to-dose 
ai 5328-828$. It opened- at 5330 i- 
331 and touched a high of 5330i-‘ 
331 in early trading before drift- 
iardway to tf low Of 5325f326f. • 

' Jn Frankfurt: the 12* kilo bar 
was' fixed at. PM. 25,455' per kilo * 
( $3^8.03.'- ' per bonce) against 
ml. '‘23,46$ ■ ^S31J7.) -previously 
fcfdsed ,*af - 9326*-627* from 

!&' Burls tiie .12* kilo bar was 
fit&F-at m-' 66,500 per kilo 
($^&26 j)4r i>unce).in the after- 
nqp, .compared. with FFr 66,500 
(93 I^jK!) iii the morning and 
Fffr 66,000 (5330.69) on Tuesday 


HlgbUrdaf 

cesh-«.... 

5 rathe 
SetUem't 
Cathode* 
r..«h 
3 months 
Settlem't 
US. Prod. 


f734.5-6^- 
760.5-1 
7S5 JB 


]726.6-7J 

7B1-S 

7S7A 


16.7 

1M 

n* 


16 

(-18J] 
r— IB 


732-3 

757.6-8 


722-3 

74B-.8 


•68-78 


months £2.940. 50. 40. Kerb: Three 
months £2,930. 40. Turnover, 456 
tonnes. 

SILVER 

Silver was fixed Bp an ounce lower 
for spot deliver in the London bullion 
market yesterday at 333.8p. U.S. cent 
equivalents of the fixing levels were: 
spat GBI.Sc. down 1S.7c; three-month 
613.6c, down 17.2c; six-month 635.6c. 
down 17.6c: and 12-month 679.8c, down 
17.6c. The metal opened 338-341 p 
(601 -605c) and closed at 337-340p (588- 
602c). 


Dec 112.00 East Coast spllsrs. Rest 
unquoted. 

RUBBER 

The London physical market' opened 
easier, enrected some interest at the 
lovrer Teveia. and closed^ uncartain. 
Lewis lend Paat recorded a June fob 
pries for No. 1 RSS. In. Kuala Lumpur 
of 200.0 (207.5) cents a kg 4>nd SMR 
20 178.0 (179.5). 


PRICE CHANGES 

In tonnes unless otherwise stated. 




k22A 

HU 


SILVER 

P« r 

troy oz. 

Bullion 

fixing 

price 

+ or 

L.M.E. 

p.m. 

Unofflol 

+or 

Spot 

3 months. 
8 monthaJ 
12 months 

353top 

3«4.10p 

554^0p 

S76.50p 

-BJW 

-8.16 

-8.551 

kfltol 

336.75p 

347JJ5p 

-2.25 

-1.26 


No. 1 j Yeat’r’ye 
RAS. J dose 


Previous 

cloae 


Business 

Done 



July 1 48.70-60.10; S1.7D-6ZJMN — 

Aug 49. JO -60.60 61^B« o 40 — 

Jiy-Sept 60.10-60.20; 61. 60-61 j® 60.704B^0 
rM-nsr! M BUKJ.rn! 53,50-65.40; sa.im.6J_M 


Metals 
Aluminium _. 

FreeMkt.-. 
Coppar.--.-L 
Cash h grade. J£733.fi 

3 mths £757.73 

Cash Cathodo_i£722.5 


£810/815 

gsn/im 


In' Luxembourg the dollar per 
ounce equivalent of the 12 ^ kilo 
bar was S327. 

In Zurich gold finished at $326- 
329 against S327-330, 


LONDON FUTURES 


Month 

Yeat 1 relay’d 

cloae 

■for 

Business 

Done. 

August— 

SepTrnb'r 

October:.. 

November 

December 

£ per troy 
ounce 
1M.75-B.80 
iro.50-a.45 
1fl1JQT.75{ 
W3.7M,» 
196.46-6,70 

HUS76 

r+«J52B 

■3.250 

1S9JHLSJ0 

18BJHU.S0 

188.5W.1fl 

into 

194 to 


Copper — Amalgamated Metal Trading 
reported that in the mornin g th ree 
months Hlghsr Grade, traded at £763.00, 

84.00. 63.50, 64.00, 63.50. 63.00. 82.00. 

61.00. 01.50, 61 to, 50.5a 61 to. 60.50. 
61 .DO. Kerb: Higher Grads, 'three' 
months £762. 6T.0a 60.50, BOW. 

Afternoon higher grade £759.00, 58 to, 

58.00. 67.00. 58 to. StoOO. 57.00. 57to 

58.00. 59.00. 58 to. Kerb: Higher Grade, 
three months £756.00. 65.50. .55.00. 

54.00. 54.50i 54.00, 54to 55.00. 55to. 

56.00. 57.00, 56 to. Turnover, 19.275 
tonnes. 


LME— Turnover 60 (BO) lots of 
10,000 oza. Morning: three months 

345.0. 44.5. 44.4. Kerb: three months 

344.0. Afternoon: three months 346.0, 
46.5. 47.0. Kerb: three months 347.0. 

48.0. 


Oct-Dec! 6!. 66-62.70 
Jan-Mar, K.20-66.5B 
Apl-Jnel 67.40-57.60 
Jly-Sept 69JO-S9J® 
Oct-Deol 81.70-31 JO 
J'n-Mchl 65.6045.70 


65.8D-56.Ml BBto-64 M 


68.004S.1fll 

69.10- 70.50 

82.10- 62^1 

64J10-64.2C; 


65to-62.20 


COCOA 


On the opening trade houses hedged 
renewred sates by . West African 
producers. Arbitrage buying and acme 
late manufacturer support helped » 
pare the esdler (oeeea. reports GrH 
and Duffus. 


67.60-67.48 
MJ0-69to 
81.70 

B5 to65.Ba 

Sales: 471 (543) Iota of 15~tonnes. 
nil (1) lots of 5 tonnes. 

Physical cjpsigl prices (buyers) 
wBre: Spot 49.00p ^Itop): July 50.75p 
(same): Aug 51.76p (51 top). 

SOYABEAN MEAL 

The opening was litda changed, 
reports T. G. Roddick. Prices found 
trade support encouraged by weaker 
sterling. 


21 *854.78 

|£to325 

Bill UOUI(IUDa.*M iaa ( M . — _ 

3 rathe. Ut748.25 ,-42,6l£a76.S 

Gold troy oz . '*328.375 — 2 [8538 
Lead Cash— — [£286.5 —7 *313.5 

3 mths. .|£a972B U7 (£327^5 

Nickel [£3923 

Free mW. |885rfW5c| 


£3974 

I |3KS«B5c 

Pletln'mtr o*ry'«860 |..«....{a|0 

F roomlet. £167.45 -Z.I i£168.50 

Quicksilver! ... 8370080 +3 j8360/576 
silver troy oz... 333^0p — 6to365.50p 

3 mths. l 344.lQp ■— 6.16I575.30P 

Tin Cash (£6560 |-100!£7085 

3 mths l£6567.5 -77.5i£7aa5 

Tungsten22J)lbi51 11,58 15106.88 

Wolf rm22^IBb»[8 110/115 I 18108/110 

Zinc Cash. «3a7.5 l— 11 pG9.75 

3 mths ...^_j£387.5 -10Jfl|B418.76 


Producers. „|S860/900j. 


Turnover: 882 (821) lots of 100 troy 
oza. 


TIN 

at m. 
Official 

+9I - 

pjn. 

Unofficial 

+or 
— t 


la - £ 

e 

• * 

£ 


6860-3 

Uaji 

6645-65 

-100 


6670- BO 

-to 

6565-80. 

-87 Ji 

Sattiem'1 

6566 

-DBS 

’ — 

,. au . 

Standard 






6660-5 ' 

-82.6 

654555 

-100 

3 months 

6570-80 

1-66 

6565-70 

-77.fi 

Settlem't 

6585 




stralta E. 

MOM 


. — 

l|aMI 

NewYerK 

X82BJU 





COCOA 

Yoatiday » 
Chwe 

+ or 

Business 

Done 

July 

Sept. 

Dec- .......... 

March ....... 

May- 

July..... 

Sent 

878-79 

901-02 

941-48 

979-80 

1002-05 

1025-24 

1043-45 

-I4.Q 
— 16,0 
-16 J) 
-14.d 
-12JJ 
-12.5 
U-11.0 

884-63 

910-94' 

948-58 

985-72 

1005-00 

1030-20 

1043-58 

Salsa: 2.3 

81 (1,882) lots of 10 tonnes. 



Yeeterdy* 

Cfoso 

+ ar 

Buailwaa 

Done 

June^.. 

August. 

October-... 

Deo. — 

Fob_ 

April 

£ 

per tonna 

12000-40.0 

ISOtoto.l 

151.B0-S1.7 

15B.B0-56.fl 

158.flO-59.il 

159.00-40.5 

+'d.Vb 
+0.70 
+ 0.80 
+ 1.76 

1B0.B0-2S.fl0 

151.704nj0 

15B.6O-55.0fl 

158 JO 


Oils 

Coconut (Phil) 

Groundnut 

Linseed Crude] 
Palm Malayan 
Seeds 

Copra Ph Up _ , 
Soyabean (UJS01 
Grains 
BarloyFut So; 
Maize — ...... 

Wheat Fut-Sop 
No^HardWInti 


8515x 

£360 

951BJ 

8859 


p£: 

_£ 


104.90 
, 136.75 
|£108,BS 


+W 


HUS 


.18866/900 

[8480 

* 

♦ 

[5510 

8350 

6276 


ojffiHt: 

n.7B£| 


+ 

+o; 

+ 0to 


105.10 
137.50 
|£124 
t 


.NEW YORK. June 9 
Heating oil was the only commodity 
responding to the Middle Eastern con- 
flict end was mostly mined in a 
highly erratic market. Precious merab 
and copper continued under heavy 
pressure with further- technical selling 
dominating the market. Cotton was 
mostly weaker as new plantings 
developed favourably. Coffee finrehad 
sharply lower on producer selling and 
a lack of interest in Brazilian quota 
offerings, reported Hemphf. 

Copper— June 57.90 (fiB-SS), July 
58.35-58.45 . (60,50), Aug 5S-2S, Sept 
aoto-eoto Dec 62.40-62.90. Jan 63.60. 
March 64.95, May 66.OV66.20, July 

66.00. 5ept 09.85, Dec 72.00. Jen 73.00, 
March 74.50. 

Potatoes (round whites) — Nov 75.’ 
(78.4).. Feb 83.5 (88.6). March 86.5. 
AprH 96.5-97.0. Sales: 223. 

TSIhrar — Juna 688.1 (605.0), July 

591.0- 694.0 (609.5), Aug 5994. Sept 

604.0- 609.0i, Dec 628-0-631.0, Jan 638.0, 
Merch 662.0, May 667.0, July 682.0. 
Sapi 697.0. Dec 719.5. Jen 727.0. Merch 

742.0. Handy end Harman buiHon spot: 
599-0 (604.0). 

Tin — 638,0-540.0 (545.0^49.0). 

CHICAGO. June 9 

Lard — CMoago loose 24.00-24^5 
(24.00). 

Live Cattle— June 71.45-71.50 (70.82), 
Aug 63.35-63,50 (63.25). Oct 6055- 

60.90. Dec 60.90-61 to. Feb 01-10. April 
60.80. June 62to- 

Uve Hoge-Juna 60.90-81.00 (69 72). 
July 57to-S7.65 (57-50), Aug 55. S- 

K.-K, Oct 53.10-S3.40. Dec 52.95-52.50. 
Feb 54.20. April 48.85, June 50.00. 

July 50.10. . 

tfMnlza — July 274-2744 (272R,). Sept 
274-274^* (273), Dec 27BV279. March 
2924-2921.. Mav 301V July 308*,. 

Pork Be I Has — July 76.70-76.80 (77.92). 
Aug 74.70-74.50 (76.07). Feb 73.58- 

73.30, March 73.85, May 73.70, July 
73.60-73.66, Aug 72.50. 


tSoyebaans— July 630-631 (632b)'* 

Aug 635 >7-636 (5374). Sept 638, Nov 
644*4 -645>4, Jan March 677. 

|1 Soya bean Meal— July 162.3- ISZfl 
(182.3), Aun 183.6 (183.6), Sept 1865. 
Oct 167.0, Dec 1S0.S-131.0. Jan 192.5- 

193.0. March 1S8.0-1S8.5. May 203.0, 
2C4.0. July 2C8.0. 

Soyabean Oil — luly 1919-19.18 
(13.K). Aug 19 47-19.43 (19.65), Sept 
19.75. Oct 19.90-19.95. Dec 23.31730.33, 
Jan 20.60-20.55. March 21 .00-21 JOI. May 
21.40-21.45, Jiffy 21.70-21.75. 

tWhcat — July 343’z-3A3h 
Sept 23a»«-359 (2S3>aT. Deo 381>r331, 
March 397-3364. May 4Q3i*. JuW 401. 

AN cents per pound e»- warehouse 
unless otherwise stared. • S par troy 
ounce. 9 Cents per troy ounce. 
tt Cents per 58-lb bushel, f Cents 
per 60-lb bushel. || S per short ion 
(2. COO lb). §SCan. per metric ton. 
55 $ per 1.000 sq ft. i Cents per 
dozen, ft S per metric ton. 

Tuesday's closing prices • ( 

NEW YORK. June 8. ' 
tt Cocoa— July 1431 (1431). Sept 1467 
(1477). Dec 1632. March 1600, May. 
1645. July 1685. Seles: 4.200. 

Coffee—" C " Contract: July 139.2S- ( 
139.50 (140.69). Sept 131.06 (131 .80) J 
Dec 125.50, March 122.25. May 119.50-' 
120 to. July 111.00-120.00. Sept 121.50. 
Seles: 2.170. > 

Orange Juice— July 113 80-114.00 

(113.00) . Sept 116.50 (115.70), Nov 

118.90-119.10. Jan 120.90-121.20. March' 
122.46-122.60. May 124 00-124.25, July 
125.55-125.75, Sept 127 10-127.50. Nov 
128.10-129.00. Sales: 700. | 

. CHICAGO. June 8. | 
Chicago Imm Gold — June 331.5 

(338.1) , 5ept 341.5-341.2 (346.7). Deo. 

353.0. Merch 364.3, June 376.2, Septl 
3884. 


v- f-f | 

■,.j s . - 

• June 9 j June 8 

Gokf Bullion, (fine our 

0)«iee ; : i..».s...J538MB8a* tfiiBS-iasisi 

OpenlfiB-- :.»A JfS30l4>831 (BMMMif) . 

Mqrpjog fbdng...-l53S6.75 (£183^26) 

ARAtiMn.fl&fng-ISSZS . . (£183.435) 

ica) 

16530-3504* (£185-18814) 

8330S,-331lt (£184le-186j 
5350.90 (£184.778) 

5338.75 (£184.071) 


Tin — Morning; Standard, cosh £6,550. 
60, three rponths £8 £80. 70, 60. TO, 
75. Kerb: Standard, three months 
£8,575. 80, 7S. Afternoon: Standard, 
cash £6,545, thru months fBJ670, 65, 
70. Kerb: .Standard, three months 
£6.580, SO, 6,600. 6,695. B.BOO, 0,590. 
Turnover. 1 J510 tonnes. 


Gold Colna June 9 




Kr&Bfnd 83S75uSSfll# (ClflOU-lSOSt) 
1/2*krag S174A75 . (£98-083*1 
IMMrug 888la-Sflia- <£SO-5C l a) 
1/lfltotM- J36-37 (£2014-203*) 

MapHelm SSSTK-iSB^. (19014-191) 
New Sov ,57814-783* - (644-44M) 


[King Sov 

Vfotoria Sov 

French 20s 
|50 psos Max. 
too cor. Aust 
<620 Eagles 


589-90 la <£50^-S0ifi) 
SB9-901a (£60-50 >s) 
571-7314 (£40-41**) 

840213-405 waa«-228i) 
832 1-323 la (£101-182141 
6408-418 (£230-8325*1 


- LEAD 

•um. 

Official 

+ CM 

Uncffiata] 

+ or 
— t 

Cash. — 
3 months 
Sottiom'tj 
U^. Gpoti 

£ 

288.5-9 

298>9J 

889 

£ 
—4 
—5.76 
— 4 

i -....1 

* * 
266-7 
297-w6 

•85^7 

£ 

-7 

-7 

. Lead— ■Morning: 
months £296.00, , 1 

Cash £288.00. 
16.50, 87.00, fl 

three 

8.00, 


(71.43). krdicatcB’ price for June 10: 
71.02 (71.20). 

COFFEE 

Linked to an outer New York clou 
Hob us tax opened lowar in light volume, 
reports □ nix el Burnham Lambert. Con- 
tinued dollar strength followed by a 
steady New York prompted . trade 
interest but overhead resistance at 
recent highs prevented a significant 
breakthrough resulting in a weak clou 
as dealers sought to establish hedges, 


COFFEE 


esto rtlny 

Close 


1+ or 


[Buslneaa 

Done 


-«r 


r- 




> advertiser wishes lease 

vi V - seat(s) 

-■ -telephone .’053^85115 


LONDON METAL BROKERS i 

Financial Status 8 Performance 
Comprehensive detailed .financial 

analysis of London Brokers for 
80/81 la now available. from: 

Financial Jmrrf/igenco & HBeearch | 
143 Uxbridge Road 
London W13 



Co- m 




i- * 

fi - 


lt J' 

= ? .if 

* ’ * 

‘ ■ ' ( 

* .’I 

y ?;• t; 


TofinH.howio invest in the Commodity Market and 


I . knowyoureypoefed rate of return please phone John Wood 
' brJohnQ3theraIdeson0I-3363242/3cmdaskfqr6urIat8st 

I bracJiuie. Or send this coupon to Charrington & Woodltd, 
37/39 St Andrews Hill, London; EC4V5DD. ; 


I 

I 


NAME. 


.ADDRESS. 



^ CHARRINGTON & WOOD LTD ^ 


i 

i 

i 

i 

i 


Three months £293.00, 99.00. Afretr 
noon: Three months C29B.OO. 96.60. 
37.00, 98.00. 37.00. 96,50. 37.00. Kerb: 
Throe months £287.00. 96.00. 96.00. 
36 to . 07.00. S7to, 96to. Turnover. 
16.225 tonnes. 


•July 

Sept., 

Nov 

January..,. 

March....... 

May 

July 


ZINC 

aum. 

Official 


- p-m. 
UnoffiolaJ 



. £ 

£ 

£ ' 

£ 

CSflh 

398- A 

■K7B 

387-8 

-11 

5. months 

398-.S 

f.7S 

5874$ 

-10,7 

S’ m ant „. 

3905 

+J 

— 


Pr/mwta 

- — 

— 

•3M7.7S 

— 


Zinc — Morning; Three - months 
£395.00, 95.50, ' 96.00. 97.00. B7to. 

88.00. ■ ■Kerb; Three mmrths £397.00. 
37.60. 97.00. Afternoon: Three months 
£394.00, 95.00. 94.00, 33.00, 30.00. 

89.00, 89.50. 89.00. 88.00. Kerb: Three 
months £387.00. 87.50. 88to. 89.00. 
90to, 88.00," 88 to, .88.00. Turnover, 
16.225 tonnaa. 


per tonne) . 

1207-08 [—12.011230.07 
1140-41 -14.01163-40 
1061-83 -29 JS 1114-82 
1068-62 -35.0 1095-63 
1040-50 —31.6 1076-40 
1040-49 -23.0 1070-60 

Jui y. ...i : looq^o —55.0 — 

Sales: (3.7T3) - fots oTS tonnes 

ICO Indicator pneae far June 8 
(U.S. cents per pound): Camp, daily 
1379 123.52 (123.T7); 15-day average 
120 JO (113.98). 

GRAINS 

July wheat opened BOp higher, the 
rest wars Irtde changed. July 'whaat 
continued to firm on commercial buy- 
ing hilt drifted lower on hedge selling 
and long liquidation. N aw crops ware 
quietly . steady, remaining within s 


Sales: 152 (178) lots of 100 tonnes. 
SOYABEAN OIL — The market opened 
$2.00 lower and drilled but found 
strong commercial demand particularly 
in the forward months. Closing prices 
and business done (U.S.S per tonne): 
June J96. 00-502.00. untraded; Aug 

497.00- 488.00, 502.00-437.60; OR 500.00- 
500.50. 500.30-498.00: Dec 506.50-507.00. 

507.00- 508.00: Feb 513.5-514.00, 512.50- 

510.00; April 521 .00-622.00, 520.00- 

519.00; June 522JXI-S31-0P, ■ untraded. 
Turnover: 201 (51) lots of 25 tonnes. 

SUGAR 1 

LONDON DAILY PRICE— Raw sugar 
£99.00 (£103.00) a tonne off Juno- July 
shipment. White sugar daily price 
£129.00 (£131.00). 

Disappointed long liquidation deve- ' 
loped fallowing the weak New York 
cloae and all positions fall to new iifa- 
of -con tract lows, reports C. Csarnikow. 


Other 

eonunoditi ... 
Cocoa shlp't* ^904 


Future SeptWOOU i-16 ^971,6 


Coffee Ff8ept*1140^ 


Cotton A-Index 
Gas Off July» 


73.8 5o 
18898 


Robber (Wlc)_l49p 


-14 (£992 


|-14. £1136.5 
4 -0J3 77.15c 
1-0.76 8380.35 
-8 53.5b 

-4 £113 

|899pKllo 


Sugar (Raw)—. £99u 
Woolt'ps B4s M.|397p kilo 

t Unquoted, x Aug-Sapt. u June-July. 
w.May-Juna. y .July, t Per 76 lb flBSk. 
* Ghana coconut, n Nominal. S Seller. 


EUROPEAN MARKETS 

Soyameat— (U S. S oor tonne): 44 
per cent afloat 21S traded: afloat 222, 
June 221.50. Juiy 222.50. Aug 225.. 
Sept 226.50. Oct 229. Nov/Warcb 236 
sellers. Pellets Brenl annul 228 trartod: 
afloat 230, June £32.50. June/5ept 
234.50. July 233. Nav/March 254 sellare. 


t i 

No. 4 {Yesterday 

Previous 

| Business 

Ccn- close 

close 

dona 

tract | 




£ per tonne 


Aug (!0fitoflS.4fll 


Oct. 

Jan 

March 
May— -I 
Aug 
Oct_...j 


ioato-8B.Ba 

1 16JMM7.S0 


IOfltoM.40 108.76400 
ni.65r.l1.7W112to08J» 
119.00-20.00 — 


121toai.7K124to24.7B|ia4to21to 


AlURiinm 

«.m,. 

Official 

+«r 

p.m- '|+or 
Unofficial | — t 

Spot ....... 

3 montha 

514,5-5 

634.55. 

fi 

-i to 

-u 

814- .5 j-fjB 
B34-.5 Uto 

Aluminium — Morning: Three months 

038.50. 36 to. 35.00. Kerb; Three 
mantfia £535.00, 34.00. 34. SO. 35.00, 

34.50. Afternoon: Three months £533.00, 

33.50. 33.00, 32.50. 33.00, 33.50, 3A0a 

34.50. ■ Kerb:. Thru . months 535.50. 
34.0a TumeAar, Stofi tonnes. 

NICKEL 

■um. 

Official 

for 

p.m. 

Unofficial 


spot^.^ 
5 months 

B9B&50 

.2960-60 

+32.S 

rf17.fi 

2900-10 

'2935-40 

-10 

-7.5 


WHEAT 

>i 

BARLEY 


rYestenfys 

+or 

Yest'rd'ys 

+or 

Mnth 

eloaa 

“ 

close * 


July- 

119X10 

+oto 



Sept. 

10B.85 

+0.25 

104.90 

+Oto 

Nov_ 

112, 40 

+0,20 

108.66 

+0to 

Jan... 

116.18 

+0J6 

112.50 

+0,15 

Mar„ 

119.70 

+ 0.25 

113.60 

+0.16 

May.. 

122.90 

+0.1G 

116.78 

+Oto 


• Cents per pound, t MS per kilo . 

t On previoes uncfficiet ekrae. 

Nickel — ■ Morning: ‘Three months 
£2,820, 25. 30. & 38.r 45. 50. Kerb: 
Three months £2,960, Afternoon: Three 


119.00, Sept 10BJ90-108.7S. Nov 112.60- 
112.40, Jan 11 B.15-T1B.10. March 119.70- 
119.65. May 123.00-I22to. Sales: 96 
lots of 100 tonnes. Barley: Sept .105.00- 
104.80. Nov 108to-108,40. Jan no 

-trades, March no tradaa. May 118,80- 
118.75. Sales: 88 lots of 100 tonnes. 

HGC A -. - L ocational ex-farm ' spot 

prices- Feed Barley: Eastern 110.4a 
N East 110.7a Scotland 110.30 The 
UK Monetary coefficient fpr tiie week 
beginning Monday May 14. is expected 
to change to 0.919. - 

LONDON GRAINS— Wheat: U.S. Dark* 
Northern Spring No 1 14 per cent. 
June 11050, July 109.75; Aug 109.00 
trnns shipment East Coast saliere. 
English Feed fob Sept 112.50, Oct 

114.00. Jan-March 121 to East Coeat 
aalJara. Mater: ' French second -half 
June 138.75 trans shipment Earn Cojet 
B elief- South African Whjtt/Yallow 
June-July 85.00 seller. Barley: Enqljah 
Feed fob Aug 105.00 Sept 108-00, Octi 


124to24.75 12B.7B-Sfitoi1£7to24to 
12E JB-28JJ0 1M.B6-S0to! - 

_ 12BJ5-S2.M! 1 fii.OO-ntol . — - 

Salsa: 3.011 (2.833) lots of 50 

tonnaa. 

Tata and Lyle delivery price for 
Granulated beais whits sugar was 
£374.00 (same) a tonne fob for homa 
trade and £204.00 (£208.00) for export. 

International Sugar Agreement (U.S. 
cants per pound) fob and stowed 
Caribbean ports. Prices for June 8: 
Daily once 7 .09 (7.0B); )5-day average 
7.57 (7.63). 

WOOL FUTURES 

LONDON NEW ZEALAND CROS5- 
BREDS— Close (in cider: buvsr. sellar, 
business). New Zealand cants par kg. 
Aug 375. 383. 383: Oct 401, 403, 402: 
Dec 407, 411, 410; Jan 409, 412, 411- 
410: ' March 418, 421, 421-420-.. May 
428. .431, 431-430: Aug 436,. 441. 441: 
Oct 437. 442. 442; Dee 444.' 445, 445. 
Salas: 33. 

SYDNEY GREASY WOOU-Cloae (In 
order, buyer, sellar. business),- 
Australian cants per kg. July 5S9.0, 

560.0, 560.0-557.0; Oct 527.0. 528.0. 
S29.5-526.0-, Dee 530.0, 5 31.0. 534.0- 
530.0: March 535 .a 537.0, S27.0-535.0? 
May 540.0. 541.0, 541.0; July 547 J), 

548.0. untradad; Oct 545.0, 547.0,: 
untraded; Dee 551.0, 552.0, 552.0. Safas; 
120 . 

COTTON 

UVEHPOOL— -No "spei or shipment 
sales were recorded. . Demand was 
spasmodic, and rransactiona ware' con- 
fined to e limited scale; With renewed 
uncertainly About tha outlpok. cu6to- 


INDICES— 

FINANCIAL TIMS 


June Bj June V 

M'th ago 

Y’ar ago 

231.42 |250.80 j 

242.55 1 

261.19 

(Baas; July 1, 1952 - 

100) - 


REUTERS 


June 9 I June B |M'th ago} Y'arago 
1506 JB ;1517^ j .157081 1755,2 
(Base: September 18, 1831 " TOO) 

MOODY’S 


Junes 

June? 

M'th eao 

pTarago 

987.6 

991JS 

1008.2 

1083 A 


(December 31. 1331 - 100) 
DOW JONES 


Dow ! 

June 

June 

Month 

Year 

Jonas 

8 1 

7 

ago 

ago 

Spot ! 


123.74 

125.85 

— 

Futr'a ' 

123.51 

124^7 

129.16 

— 


(Base: December 31. 1974 - 100) 


ROTTERDAM. Juno 9. 
Wheat— (U.S. S per tonna): U.S. 
Two Dark Hard Winter 135 per cent. 
July 179. Aug 179.75. U.S. No Three 
Amber Durum June 176, July. 178. Aug . 
181. Sept 183. U.S. No Two Northern 
Spring 14 per cent afloat 131, Juno 
179. July 178, Aug 177. Sept 176.50. 
Canadian Western Red Spring June/ 
Aug. 200, Sept 202. 

Maize— (U.S. S per tonne): U.S. No 
Three Yellow afloat 130, June 130, 
July 12950. Aug 129. Sept .129. Oct/ 
Dec 128, Jan/Maieh 138 sellers. 

Soyabeans— (U.S. $ per tonne): U.S. 
Two Yellow Gulfporta June 2S3, July 
25450, AUR 258.60, Sept 258, Oct 255. 
Nov 255, Dbc 260, Jan 266. Feb 271. 
March 274 sellers. 


PARIS. June 9. 

Cocoa— (FFr per 100 kilos): July 965- 
9%. Sept 1036-1033. Dee 1073-1078. 
March 1120-1130. Mav 1145-1155, July 
175-1185, Sept 1215-1225. Sales at call: 

Sugar — (FFr per tonne): July 1330- 
1400, Aug 1400-1401. Oct 1371-1374, 
Nov 1370-1378. Dec 1375-1380. March 
1460-1470, May 1510-1520, July 1535- 
1545. Sales at call: 2. 


mere failed to extend engagements and 
the cell for supplies wee minimal. 


POTATOES 


LONDON POTATO FUTURES — All 
■ pcartions. except. November, opened 
lower and attracted further Belling 
throughout tire day. reports Coley and 
Harper,' dosing prices; Nov 63 JO, 
“1.10, (high 64.50, ion S3 JO}: ' Feb 
72.10. —1.40. (high 73.00, low 72.10); 
.April 8TJ0, -1,70, (high 83 JO, low 
81.70); May 92.00, -2.00. (WflhMJO, 
low 81 to). Turnover. 467 (118) toll 
of 40 tonne*. 

MEAT/FISH. 

SM1TMF1SJD— Pence par pound. Beef: 
Scotch killed side* 78.6 to 84.0; English 
hihdquert*ra 96.0 to 100.0, forequarters 
51 J to 58J; Ulstor'hlndquertere 94J to 
98.0, forequarters 54J5 to S7.0. Vesi; 
Dutch hinds end ends 117.0 to 122-0. 
Uunb: English small 71.0 to 78 0.' 
rood j um 66.0 to 72,0. heavy 60.0 to 64 J;. 
Impo rt e d - -New Zealand PL 63.0 to 63.0: 
PM 81 S to 62.0, YL 59.0 to 60.0. Pork! 
English, under 100 lb 90.0, to 64.0, 


100-120 lb 44.0 to 82.0. 120.180 lb 37.0 
to 60.0. 

MEAT COMMISSION— Average fat- 
stock prices at representative markers. 
GB— Cattle 97.5Zp per kg 1w (-3.55). 
GB — Sheep 138-19p per kg tnt dew 
(-33.33). GB— Pigs 67.O0p per kg lw 
(-4.76). 

GRIMSBY FISH .— Supply good, 
demand fair. Prices at ship's side 
(unprocessed) per stone; Sheri cod 
C3.70-C4.40. codlings £3-30-£3.80: large 
haddock C4.20. medium £3. BO- £3.80. 

smsM C2.20-fi2.60: large pW<se «^0- 

£5.30, medium E3.70-fi4.90. bast small 
£3.30434.30; stained dogfish (forge) 
£4.50, (medium) £3-50; lemon soles 
’ (large) £7 to, (medium) E7.00; raokfish 
£1 to-£2to; »aithe C2.00-C230. 

COVBliT GARDEN— Prices for the 
bulk of produce. In sterling per pack- 
age except where otiierwica stated. 
Imported Produce: Oranges— -Jaffa: 20- 
kg Valencia La tea 66 6-2S. 00 6to, 75 
Bto. 88 5.85. 105 5.50. 123 4.85. 144 

4.50, 168 4.50: Moroccan: 16-kg 

Valencia Lutes 48/113 3.80-6.50; Out- 

■ span: 'Navels 40 5to, 48 5.40, 56 '5.95. 
72 5.80. 88 5.10. 112 4to. 138 3to, 150 

3.50. Topes— Israeli: 56/72 9.50-7.00.- 
Lemons— Scania: Trays 5-kg 40/50 

I. 40-1.80; Jaffa: 1S-kg 90/123 3.20-4.00; 

Outapan: 15Vks ,80/180 : 4to-6.20. 
Grapefruit— U.S.: 16/17-kg. Florida 

Ruby 9.00; Jaffa: 20-kg 27 4.25. 32 4.45. 
38 4.55. 40 4.90. 48 5 to, 58 5.39. 64 
5.15. 75. 4to. 86 4.00; S. African:. 27 
4.30. 32 4.50, 38 4.65. 40.4.80, 48 5.00, 
56 5.06, 64 4.75, 72 4.30— Ruby seme « 
White. Apples — French: Golden Deli- 
cious 18-fcg 8.00-1 1 to. . Tasmanien: 
-Golden Delicious 1 1.00-12.00. Jonathan 

II. 00-11 to. Granny Smith 10.00-10.80. 
Sturmer Pippins 71-00-11.50: Australian: 
King Cote 12.00: New Zealand: Red 
Delicious 11.00*12.00, Granny Smith 
10.00-11JX), Sumrers. 111.50-12.00; S. 
African: Granny' Smith 10.KM1.00. 
Golden Delicious' 12.00-1 2 to. Stark- 

' crimaon 10.50-12.00; * U.S^ 18-kg Red 
DallcrouB 9.00-13.00. Pure— Australian: 
Winter Nelic 13.00-14JM: Tasmanian: 
Packham's. Triumph 15.00-7600; S.. 
Afncan; 1B-kg Pflckham’s- Triumph 


U. 00-1 5. CO. Winter Nells 12.50-13.00. 
Josephines 13.00-14.00, Cornice 15.00: 
Chilean: ‘Pack-ham's Triumph 20-kg 

15.00. Peaches— U.S: 64's 12.BO: 
Spanish: 3.00-5.60; French; 4 00-5.50; 
Italian: largo trays 5to-6.00. Plums— 
Spanish; li-Ib Red Beauty r»er pound 
0.40-0.60. Grapes— S. African: Barimkd 
5:20-5.50: Isrenli: PerlcitB 7.30-8.00; 
Chilean; 5-ka Red Emperor 6.20-6 50, 
Almeria 7.00-8.00, RLbiar 6.50-7.0a 
Strawberries— Spanish: 8-nz 0.30-0.25; 
Iralian: S-oz 0.30-0to: Belgian; 0.40. 
Gooseberries— Hungarian: 6-l - g per lb 
0.30. Cherries — French: Per pound 0.30- 
0.50; Turkish: Per pound 0.50; Italian: 
0.30-0.70. Apricots— Spanish: 5-kg 
3.00-5.00. Nectarines— Spanish; 4 00- 

6.00. Melons— Guatemala: 10-kg Yellow 

6.00; Spanish: Gelia 3.00-4.00. Yellow 
10-kg 5.00-5.50; Colombian: Green 10- 
fcg 6.00: Israeli: Yellow 7.00. Water- 
Melons— Spanish: 16-kg 6.50-7.00; 

Israeli: 4 80-6.00. Pineapples— Ivory 
Coast: Each 0 40-1.20. Bananas— 
Colombian: 40-lb ho/ns 9.20-9 40. 
Avocados— S. Afncan: 3.00: Kenvan: 
5 00: Brerilian: 500-5 50 Mangoes— 
Kenyan: 8/16 4.C0-5 00: Mall: 5.00; U.S.: 
8.00: Mexican: 7.00: Guatemalan: 6.00. 

■ English Produce: Potatoes — P°r 55 lb, 
■Whits 4,50-5.00. Rr.ri 4.0-5.50. Kmg 
Edwards 5.C0-S 50. Per lb. new 0.09- 
010. Mushrooms— Per ib. open 0 20- 
0.50, closed 0.50-0.60. Lettuce— PBr 
12, round Q.S3-1 .40, VJebb's 1.60-1 to, 
Cos 1.20 2.40. Onions— Per 55 lb, 
4G/8Cmm 3.00-4.50. Bpring Onions— 
Per bunch 0.12-0.14. Spring Cabbege 
—Per 25 Ib. 1.00-1.50. Carrots— Per 
28/28 Ib 3.60-4.00. Bctroots— Par 28tb. 
round 1. CO-1. 20, Jong 1.20. Rhubarb— 
P?r Ib, outdoor 0.03-0.10. Leeks— Per 
J 1 ? Ib 1.20-1.60. - Cucumbers — Per 
"tcfcsge 3.20-4.00. Greens — Per 30 lb, 
Kent 0.80-1.50. Tomatoes- — Per 12 Ib 
bet D/E 3.80-4.00. Cauliflowers — Per 
12 Kant 4.00-6.C0, Lincoln 2.00-3.00. 
Asparagus— Par lb 0.60-1.50. Celery — 
Per 12/30 3.00-3.50. Bread Beans— Per 
Hj 0.15-0.18. Marrows— Each 0.30-0.35. 
Peas— Per Ib 0 30-0.40. Apples — Per Ib, 

. Bromley 0 30-0.34. Strawberries — Per 
B oi 0 atJ.0.50. 4 o* 0.20*9.25. Rasp* 
bemw— Per 4-oz pack 0 .50-0.70* 
GoosabBnies— ■ Per lb 0.25-0.30, 




28 


Conpanies aad Markets 


INTERNATIONAL COMPANIES and FINANCE 


Financial Times Thursday June 10 198& 




— / 

- •• « - 


Construction 
side likely 
to curb 
FMC 


By Terry Byland 


FMC, the U.S. defence indus- 
try, industrial chemicals and 
speciality machinery maker, 
■was "bunkering down for a 
rough year." Mr Robert B. Hoff- 
man, vice-president finance, said 
in London yesterday. 

Performance at the defence 
division was “fantastic” and 
sales at the petroleum equip- 
ment section were also growing 
strongly. Industrial chemical 
sales, however, provider of 
nearly half the group’s profits 
last year, might be down 
slightly, and the construction 
industry division remained a 
“disaster." 

Overall. Mr Hoffman accepted 
recent forecasts from the securi- 
ties industry that profits would 
fall this year below the $5.28 a 
share of fiscal 1981. 

However, the board was still 
confident that it would achieve 
its goals of IS per cent return 
mi equity and 15 per cent on 
capital by 1986. At present 
these returns are 13.9 per cent 
and 19-11 per cent respectively, 
compared with 11.7 per cent and 
9.9 per cent a year ago. 

The improvement reflects the 
board's policy of switching away 
from -low yielding industries 
into areas offering better 
returns. Businesses representing 
about $35Sm in annual sales 
have been, sold in the past three 
years. 

Further disposals are likely, 
possibly in the specialised 
machinery division, where the 
dismal performance from con- 
struction industry subsidiaries 
continues to far outweigh trad- 
ing outcome at the food 
machinery materials handling 
and agricultural machinery 
operations. 

In this division, sales of 
airline equipment remains fiat. 

The 25 per cent share of 
group earnings from the 
defence side, was rising rapidly. 
Mr Hoffman said. The fall in 
first quarter earnings was attri- 
butable to start-up costs of our 
armoured personnel carrier. 
Sales of this division were 
expected to top $lbn this year, 
almost double last year's. 

FMC supplies most of the 
tracked armoured personnel 
carriers to the armies of the 
free world. It also produces 
missile launching equipment 
for the U.S. Navy and expects 
to benefit from the current U.S. 
policy of re-equipping "moth- 
balled" U.S. warships from 
World War II. These sales to 
the Navy could generate turn- 
over of $200m this year. 


Cities Service offers 
S1.3bn for Mesa 


BY PAUL BETTS IN NEW YORK 


CITIES SERVICE, the 20fh 
largest U.S. oil company, is now 
offering to acquire Mesa 
Petroleum for more than $1.3bn 
on a friendly basis. 

The offer, involving $21 a 
share in cash for 51 per cent of 
Mesa and 0.45 Cities Service 
shares for each remaining Mesa 
share is the latest round ha the 
acrimonious takeover battle 
between the companies. 

The new Cities Service offer 
at current prices represents an 
average of between $18 and $19 
a share for all Mesa stock or a 
shade more than the 817 a share 
for 51 per cent of Mesa cash 
tender offer already made by 
Cities Service. 

By tabling a second offer.-. 
Cities Service has basically 
thrown the ball back into Mesa's 
court — Mesa has also made two 
offers for Cities Service, a com- 
pany 20 times its size. 

Mesa offered $50 a share — 
worth a total of $3.9bn — for a 
controlling stake in Cities 


Service on a friendly basis, and 
a $45 a share for a 15 per cent 
stake in the form of a hostile 
cash tender offer, worth $629m. 

Mr Charles Waidelich, Cities 
Service chairman, also .said last 
nigbt that his company's direc- 
tors had unanimously rejected 
Mesa’s two proposals, claiming 
that a combination of the com- 
panies through a takeover by 
Cities Service rather than Mesa 
“ would result an a much 
healthier and ■less highly 
leveraged company.’’ 

At the same time. Mr 
Waidelich stated that he had 
received telephone calls from 
“ a couple of other oil com- 
panies" interested in a combi- 
nation with Cities Service, 
their identity. 

The latest move by Cities 
Service and remarks by Mr 
Waidelich at a news conference 
last night reflected the depth 
of hostilities between the two 
companies- and their respective 
chairmen. 


Computer makers try to 
boost consumer market 


BY LOUISE KEHOE IN HOUSTON 


U.S. end Japanese computer 
manufacturers are introducing 
machines that represent yet 
another dramatic cut in the 
cost of computer power in 
moves aimed at enlivening the 
consumer market 

Prices on the latest offerings 
range from just $180 for a Com-, 
modore machine, that incorpor- 
ates electronic gains, a music 
synthesister and traditional com- 
puting capabilities .to $975 for a 
Cromenco Computer that would 
satisfy the needs of most 
business users. 

U.S. manufacturers are esti- 
mated to have shipped lm of 
these cheap computers over the 
past five months. The new boom 
In consumer sales will lead to a 
$4bu market for home com- 
puters alone by 1987, analysts 
are now projecting. . 

So far. the major players in 
the market are Sinclair in tiie 
UK, and in the UlS. Atari, 
Commodore, Tandy and Texas 
Instruments. The latest intro- 
duction in the market came 
this week from Commodore who 
announced their Max machine, 
at the National Computer Con- 
ference here. The company is 
determined to build upon the 
success of its $300 home com- 
puter, which is now distributed 
through department stores and 


specialist retailers throughout 
the U.S. 

Hard on the heels of the U.S. 
suppliers is a group of Japanese 
companies who are getting 
ready to enter. the U.S. market 
In Houston, Panasonic showed 
a unit that will sell for under 
$300. Epson, a Japanese com- 
pany, which has been very 
successful in the low cost 
printer market, is ai ming to 
build upon its brand name 
visibility, with an $800 portable 
computer. The Epson computer, 
which is the size of a large 
book, incorporates a full key- 
board, a small display screen, 
a cassette recorder and a 
printer — all in one box. 

To fend off the competition, 
Tandy last week cut -the price 
of its home Colour computer, 
to just over $200. Apple, the 
other major supplier in the 
personal computer market has 
no plans to introduce a very 
low cost machine, according to 
company executives. Apple is. 
however, putting together a 
system that includes peripherals 
and software, to go with its 
Apple II Computer and offering 
them at a reduced price for a 
three months’ period. “ V/e 
plan a series of these promo- 
tions — price cuts on bun (Med 
systems aimed at various mar- 
ket sectors," said the company. 


Citicorp 
stakes 
claim to 
the sky 


By Owr New York Staff 


CITICORP, the large New York 
bank, claims to have become the 
first financial Institution to own 
a piece of the sky. 

With the successful launch 
late on Tuesday night of the 
Wester V satellite from Cape 
Canaveral, it now has two 
transponders in space to relay 
messages back and forth 
between more than a dozen 
North American earth stations 
Unking its offices. 

Within three years, Citicorp 
says the satellite will, be 
handling a large portion of its 
long distance voice, data trans- 
mission and teleconferencing 
needs in. the U.S. at savings of 
"millions of dollars annually.” 

The satellite has been placed 
In orbit over the California 
coast Each of the transponders 
has a capacity of 60,000 bits 
per second for data or 480 
voice conversations. The system 
will ' be linked " to Citicorp’s 
existing international com- 
munications system which uses 
leased satellite circuits to 
connect over 1,400 offices in 93 
countries. 

So far, outright purchases of 
transponders have been made 
chiefly by companies in the 
data and communications busi- 
nesses. 

However. Citicorp has found 
that much of its work involves 
data transmission . (account 
information, details .of funds, 
customer instructions, and so 
on), and it. believes -that 
efficient communications are 
necessary to preserve its com- 
petitive edge. . 


FINE TERMS EXPECTED FOR JUMBO LOAN 


f 



to raise 



BY- PET® MONTAGNON, EUROMARKETS CORRESPONDENT 


l 


MALAYSIA. ■ IS raising a -$Lbn 
credit in the. Euromarkets,, the 
impest loan it has arranged 
since it emerged as a regular 
borrower last year. 

.. A mandate to arrange the 
borrowing. is understood to have 
been awarded yesterday - to 
Malayan Banking Bezhad, Manu- 
facturers Hanover and 'National 
Westminster. Formal announce- 
ment of the loan is expected 
shortly, probably today. 

. The boxrcjwixig breaks new 
ground, for Malaysia. Resides 
being its largest operation to 
date, it will also be the first 
Malaysian credit to offer lenders 
the chance ■ to -contribute' funds 


at a margin over the U.S. prime 
rate, w hic h as generally con- 
sidered more expensive than 
bo rrowi ng ever eurodollar rates. 

Malaysia also hopes to intro- 
duce a “ tax-spared ” element to 
the credit, using the double tax- 
ation treaty between Britain and 
Malaysia to obtain, an effective 
interest rate subsidy from 
British taxpayers. - 

This is despite proposed 
British legislation limiting the 
extent to which double taxation 
treaties can be used for this 
purpose by banks operating in 
the UK. 

A tax-spared -element of 
$150m is planned, though de- 


tails of this remain unclear marts. 


0 


pending the introduction of the 
new UK -legislation. 

Other details of the loan con- 
dition were also still al matter 
of speculation.' yesterday , r al- 
though the market is ejecting 
a 10 -year loan with a margin' 
of | per eenF over' Eurodollar 


J 


Eurobond prices fall 
amid heavy selling 


Competition to: arrange 'the 

borrowing was intense, wife an-. J * 
other group ,of r international^ 
banks vying for. the mandate 
well as a group of leading- AiabB ' 
banks; ». •<•* , . H- 

An indication. ^Malaysia's*, 
current r&Odii. standing 'cbifaesb .. 
rates or between 0.1 and 0.2 Ihnnigh comparison of the cos^i' 
per cent over U.S. prime. .. ditions it is now expected'- to 
These margins compare fav-j receive with tbbse^olnained "Wa •- 
ourably with the best available ■ -Ireland' do' 3,ts latest $KX)m, tea’J 
to European borrowers in the year .credit 
eurocredit market underlining' Ireland is -paying a mar gh ^i r ' 
the fact that Malaysia remains of I per' cent over .Eurodollar^ u 
one of the ^ blue-chip ” borrow- rates for : tiie firifr'flVe years'* 
ing countries of the Far. East, : rising t per cent thereafter/: 
despite its ruing loan- requite-; ferits club loan 


M. 

-k 

% 

n 

& 

& 


A 


r A 


Hopes fade fast for 
V enezuelan credit 


-r-H 

i 

K'=sl- 

- , .■> 


v --It 

:<S: 


BY ALAN FRIEDMAN 


Disney hints at 
video price cuts 


By Our Financial Staff 


WALT DISNEY Productions 
said yesterday it may reduce 
prices on video cassettes by as 
much as 40 per cent if Congress 
amended the First Sale doctrine 
in existing copyright laws. 

Mr • Ben Tean, Disney vice- 
president. said in Chicago that 
the price of the video cassettes, 
currently $69.95. could he cat 
to $39.95 or $49.95 if a proposed 
amenditment to existing copy- 
right laws which would end 
pirating is approved. 

He said video cassette makers 
expected sales of 1.9m units 
this year compared with 1.4m 
units in * 1981. “ With lower 
prices, a substantial increase in 
video ’ cassette sales volume 
would occur.” 


X-M0NEY MARKETS • FQREX-M0NEY MARKETS ■ FOREX-MONEY MAR 


No-one knows more 
about Pacific Basin currency 
dealing thanwe do, 


Bank of New South Wales - 
Australia’s largest banking group 
- has integrated the London 
business of The Commercial 
Bank of Australia Limited, which 
now forms part of the group, with 
its own London operations. From 
1 st April 1 982, all our business 
transactions in London will 
continue under the name of Bank 
of New South Wales. 

The merger of the banks 
in London has 


resulting in a special 
combination of experience, 
expertise and resources. 

Bank of New South Wales, 
London, is now dealing on a 
bigger scale and is able to handle 
even more deals than before. 
Active in all currencies, we are 
the major dealers in Pacific 
Basin currencies and provide a 
round-the-clock 
service from 


THE Eurodollar bond market 
continued its shake-out yester- 
day and prices fell by { point on 
average, bringing tbe total 
decline on some issues to 3 or 
4 points on the week. 

Several dealers reported 
heavy selling combined with 
price markdowns. The main 
reason’ for the fall in bond 
prices and attendant rise in 
yields, is an attempt by dealers 
to off-load excessively high 
inventories and achieve a con- 
solidation of prices levels. . 

Sales amounting to $5m blocks 
of bonds were no uncommon, 
creating what ODe trader 
characterised as “an eerie 
atmosphere in tbe dealing 
rooms." 

The recent 8200m 14 per cent 
Phillips Petroleum bonds 
(maturing in 1989) stood at a 
bid price of 94J last nigbt, down 
3 points since Monday. The 
yield now comes to 15.26 per 
cent— the level needed to 
tempt investors to purchase 
bonds this week. 

Du Ponfs recent 13? per cent 
$200ra of 1989 bonds dropped 
nearly a point to 941. while 
Superior Oil’* 14 ner cent $!25m 
1989 issue closed at 934. down 
more than one point on the day. 

■ " This ma r ket has been shaken 
to piece 1 *, but we needed it,” 
exclaimed one principal bond 
trader. F° and others stressed 
The need for a shake-out in the 
Eurobond market because of the 
huge amounts of unsold paper- 
reputed to he close to $lbn — 
and the uncertainty over interest 
rates. 

Some bond bouses are pre- 


paring to take advantage of the 
shake-out by purchasing low- 
priced paper, but the inherent 
risk of a further price decline 
and the capital ' required for 
such manoeuvres restrict the 
number of firms able to- do 
this. 

Other sectors of the inter- 
national bond market also bad 
a weak day, but Tenneco is 
launching a DM 100m 10-year 
bond carrying a 9- per cent 
coupon at par. Commerzbank is 
leading the offer. Several new 
issue managers, criticised the’ 
coupon as- too low in such a 
weak market and the Tenneco 
paper was quoted at .* 1J per 
cent discoun tlast night 

Six-month Euro - D-mark 
deposit rates nudged i point 
higher to dose at ShV per cent, 
in line with tbe * per cent 
Eurodollar increase to 15 A 
• The $75m seven-year floating 
ratenote with sterling warrants 
for the London and Scottish 
Marine Oil (LASMO) group was 
priced last night at 100* by 
lead managers Goldman Sachs 
and William’s and Glyn's. 


BY OUR EUROMARKETS. STAFF > . V . j 1 

HOPES. THAT Venezuela will reiectedlateon TuCTdkv id ghr 1 . 
he able to raise a large credit . Those proposals- also 
in the Euromarkets were fading, lenders to contribute funds at g* 
fast yesterday -after news that-' margin over the expensive ‘TJ&t 
it had rejected terms offered by prime rate which Venezuela has 


S*r 


Ct»; 

ft* 


ri 






n«j* 


l JS 


IS* 

if r 


a syndicate of about 20 inter- 
national banks. 

• Venezuela’ has given the banks, 
until tbe middle of next Week to 
decide whether they will go 
ahead on much cheaper terms. 


always rejected in -the past : 

'The main, banks involved in 
! the operation,’ ".Which " ' include. 
Rijjk of Americif and-Morgan:’ 
Guaranty, are how poHing other 
syndicate’ members - - See 




Although it has scaled downllts. Whether, they a£e. pnfflaifed4d . 

vAMHAdf 4 -a v arv.-. eVinori _ .fHrt -TiAw -.tnfrme • 


request to $1.5bn from $2bn, 
several bankers associated with 
the operation said they ; doubted 
that such a sum could be raised 
on the terms now proposed! .' 

These, provide for a 'two 
tranche credit part of which 
would hear a margin over Euro- 
dollar rates of f per cent for 
three years. The other portion 
would bear a margine of f per 
cent for three years.- rising to f 
per cent for . tbe next three 
and then to | per cent for the 


• go:- ahead - on the -new:, lerihs. 
They were nnwilUrig' yesterday 
to -prejudice ■the-outcome^bf ^ tbef 
poll, but the- answer seemed :al 
foregone conclusion. -.••••• .v.-lfc 
- “ Venezuela . is; reluctant "tar 
realise that -market- condition* 
have changed .-/considerably r ?l 
one banker, saad. ' 

- Despite Venezuelan insistences 
that dt could raise ' the credit 
from a different group,, most: 
-bankers doubted- - that such ~aj 
large Amount .as $L5bn Would! 


-.<3. 

■ 5 ? 


■Jv 




•23. - 


-5 


final two. Repayments woujhj • he* .forthcoming from . a -group; 


of 


begin after a grace period 
four years. ; 

These margins are consider^ 
ably lower than those proposed 
by the. banks, which Venezuela 


which , did hot mclude the 4WS 
leading TLS., ’ Japanese, Axafcj 
and Canadian., banks that - have 
been ^discussing the . opexhtioifeL 
with Venezuela for two month*} 

— i-i- • ■ ' — 


^: u - 




J- 


FT INTERNATIONAL BOND SERVICE 3 


•SSB3J 
5?- s 

STtii 
; 3ft' 't 
rz u r.uE 


The list shows the 200 latest international bond issues for which an adequate, secondary market 
exists. For further details of these or other hands see the complete list/of Eurobond prices which - 


will be published next on Wednesday June 16. 


Closing prices; on June 9 


Bank of 
America back 
at the top 


By Our Financial Staff 


enabled us to 
enlarge our 
London 
Foreign 
Exchange and 
Money Market 
capabilities, 



Wellington, 
Sydney, Hong 
Kong and 
Singapore to ; 
New York 
and San 
Francisco, as 
well as London. 


BANK OF AMERICA has 
regained its position as- the 
world's largest commercial 
bank by size of deposits and 
assets at the end of 1981, 
according to the New York 
trade paper, American 
Banker. 

Banker. Statistic compiled 
by it show that the U.S. bank 
supplanted Banque Nationale 
de Paris (BHP). 

Bank of America had total 
deposits of $95.9bn at the 
end of 1981, np 7,5 per emit 
from $89.3 bn at end-1980, 
when it ranked second in the 
world. 

BHP is now the world’s 
second largest bank, with 
893.9bn in deposits. Expressed 
S93.9bn in deposits. 
Expressed in dollars, its 
deposits rose by 0.3 per cent 
bat in francs deposits jumped 
by 26 per cent 

Bank of America's perform- 
ance was belped by the 
strength of the dollar against 
the franc and most i rf tbe 
world’se other major curren- 
cies. The franc fell by 20 per 
cent against the dollar last 
year to 17.6 cents per franc 
from 22 cents in 1980. 

Credit Lyonnais remained 
the third largest bank in-tbe 
world with deposits of 
$85.2bn. Barclays Bank pic 
was four, with deposits of 
$82bn. and Credit Agricole 


U.S. DOLLAR 
STRAIGHTS 
Aetna Ufa 15 88/97 
Amax liit. Fin. itt. 92 
Antax O/S. Fin. 14\» 89 
APS Fin. Co. KPa 89 ... 

ATT U>« 89 

Baker Int Fin. 0.0 92 
BHP Finance 144, 89 ... 

Bk. Amar. NT SA 12 87 
8k. Montreal 14** 87 ... 
Bqiie. Indo Suez 15 89 
British Col. Hvd. 14* 89 
Burroughs Int. 15*4 08 

Ceredair 15*i 87 150 

Canpdlen Pac. 14^ 92 75 

Carolina Power IB 1 ! 89 GO 

CIBC 16 87 100 

Citicoro O/S 15 84/92 100 
Citicoro O/S 15*3 85/97 

CNA 15 T , 97 

Con. Illinois 151, 89 . . 

Duka Pwr. O/S 15*, 89 
□uD?nt O/S Cap. 0.0 90 
ECSC 14* 87 


75 

75 

75 

400 

225 

150 

200 

100 

100 

200 

50 


125 

75 

100 

80 

300 

50 


EIB 15*, 89 150 


FVsportfrnans 14*j 89 
|*Gen. Elec. Credit 0.0 92 
Gen. Elec. Credit 0.0 93 
Getty Oil Int. 14 89 ... 
GMAC O/S Fin. 16 88 
GMAC O/S 15*4 85/97 
GMAC O/S Fin. 15 89 
GMAC O/S Fin. 15 87 
Gulf Canada Ltd 14*4 92 


Gulf Oil 14\, 94 175 


Gulf Oil Fin. 0.0 92 
Gulf Stares O/S 16 90 
Int-Am. Dv. Bk. IB** 87 
Jaean Dev. Bk. 15S 87 
New Brunswick 16*« 89 
Ontario Hydro 14*4 89... 

Pac. Gas A E>. 15\ 89 
Pac. Gas & El. 15>, 89 
J. C. Penney Gl. 0.0 94 
Philips Petrol 14 89 ... 

P.J. R voids, O/S 0.0 92 
Saskatchewan 16 89 
Shell Canada 14*, 92 ... 

So? in 15*4 R7 100 

Superior O/S Fin. 14 89 125. 
Swed. Exp. Cr. 15*« 89 
Swart. Exp. Cr. 14*. 90 
Swed. Fxp. Cr. 0.0 94 
Urtion Carbide 141, 89 
Walla Farqo I. F. 15 87 
World Bank 15 3 . 88 ... 

World Bank 14\. 87 


Change on 

Issued Bid Offer day week Yield 
150 100*, 100* -OS -n 1«.« 

101*, 102 -0*, -IN 15.85 
95* 96S —O 5 , — 1*, 16.23 
.1004101 -04 -1V15.99- 
100*. 1014 -04 -14 1337 
t264 264 0 -0414.71 
974 98 -04 -04 1SSS 
■ 904 914 -04 -24 14.73 
964 974 -O4 -I4 15.38 
974 97*4 -04 —04 15.80 
934 984 -04 -24 15.12 
1014 1014 -04 -T4 16.32 
984 1004 -04 -14 15-44 
. 964 97 0 -14 15-28 

1014 1014 -04 -14 16.05 
. 1004 1014 0 -04 15J8 
99*. 1004 -04 -04 15.00 
894 1004 -04 -14 15.40 
994 1004 0 -04 1588 
100*. 1004 -04 “14 15-54 • 
984 994 “04 “2415.88 
354 '354 O -0414-50 
984 984 -04 -04 15.20 
994 994 “04 -14 15.54 
964 974 -04 -1 15.24 
274 274 O -04 1481 
24 2d4 -04 -04 14.17 

964 37 -04 -14 14-78 

1004 1014 -04 -14 15.65 
98 984 -04 -1 1589 

964 964 —04 -24 15.85 
974 974 -04 -14 15.78 

98 98*, -04 “14 15.07 

97*. 984 “04 -04.14.59 
264 274 0 -0*, 14.35 

974 984 -04 -14 18.41 
984 984 “04 -14 15.47 

; 102 1024 “04 -04 14.73 
1014 102 -0*, -24 15.75 

99 994 -04 -2 14.91 
1024 1024 -04 -04 15.06 
1014 1014 -04 -14 15.12 

204 204 -04 -14 14.62 
954 954 -04 -1415.10 
264 274 +04 -04 14.52 
1014 1014 “04 -2 15.54 
97 974 -04 -14 1481 

994 894 — 04 -04 15.89 
S34 944 -04 “04 15.43 
984 98*. -04 -04 15.61 
954 954 -04 “04 15.80 
204 204 0 -1414.49 

984 9*4 -04 -14 15.00 
B8*«. 994 -04 —2 15.25 
994 994 -04 -04 1533 
954 964 -04 -14 15.41 


Change on 

OTHER STRAIGHTS lasued Bid Offer day week Yield 
Bell Canada 16 89 CS... 100 . 1964. SB -04 -0417.00 

984 “04 -1 16.78 


50 

400 

400 

126 

150 

100 

125 

100 

100 


300 

60 

55 

50 

75 

ISO 

80 

45 

390 

200 

400 

125 

125 


100 

100 

200 

150 

75 

250 

500 


Average price changes.'/. On day —04 on week -14 


DEUTSCHE MARK 
STRAIGHTS 


MutueL 

$81.5bn. 


was fifth with 


Telephone our London Dealing Room (01) 283 5321 
Telex; 8956425 •Reuter Monitor page code: WSXD 
Reutersjdirect dealing code; NSWL 




Bank of 9 New South Wales 

(incorporated in Australia with limited liability) 

FirstBank in Australia 

Waibrook House 23 WaJbrook London EC4N 8LD 


Sydney 

Wellington 

Kong Kong 

Singapore 

NewYork 

SanFrailciftoo 

Tel: 23.1 4404 

Tel:724035 

Tel: 21 3236 

Tel: 2232147 • 

Tel:9499838 

Tel: 98 64238 

Telex: 68001 

Telex: 30038 

Telex: 74935 

Telex: 26722 

Telex: 425679 

Telex: 470609 


Bell Canada 
to cut spending 


By Our Financial Staff 


Aslan Dev. Bnnk 94 92 150 

Australia 94 91 ' 300 

Australia 94 91 ZOO 

Barclays O/S tn^ 84 94 100 

Canada 84 89 7 200. 

Comp. Tol. Esp. 104 92 100 
Cred. Fancier 8*4 92 ... 100 

Denmark 10 88 100 

Denmark 104 92 100 

EOF 94 92 100 

FFC U4 M 2TO 

EIB 84 92 100 

4nt,-Ara. Dev. Bk. 9 92 150 

Ireland 104 88 100 

Nacnl. Financiers 11 90 150 

Nat. West. 94 92 100 

DKB 94 86 150 

Philip Morris 84 90 ... 100 

Quebec 104 92 - 150 

Ranfo 10 92 ‘100 

Tauemautobshn 94 94 50 

World Bank 94 89 100 

World Bank 84 82 .1.... 200 
Average price changes 


Change on 
lasued Bid Offer day week Yield 


964 89 “04 -04 9.48 
1024'1024 0 “04 836 
1024103 +04 -04 8.91 
95 954 “04 -14 9.00 

1004 1004 -0*4 -04 8.02 
100 1004 — 0*, -I** 10.44 
984 874 -04 -1 9.24 

1004 1004 -04 -04 9J*8 
1014 1024 “CV r°4 9.82 
1004 W14 —04 -04 9.74 
1024 1034 “04 +04 9 JO 
954 964 -04-14 9.10 
984 984 -04 “1 a» 
1014 1024 0- -04 9.58 

984 99 . -04 -0*, 1173 

1034 1CM4— 04 -04 9.25 

1014 1024 0 0 9J28 

994100 -04 -04 8.91 
1034 10^4 0 —14 9-54 

994 994.-04 -0410.08 
1014102 -04-14 9-81 
10141024 r-04 -04 9.08 
95V 884 —04 -14 9.08 
On. day —04 on weak —04 


“SUBSTANTIAL CUTS" in 
both eapital spending and 
operating costs are planned 
this year and . next by Bell 
Canada, which, as the largest 
supplier of telecommunica- 
tions equipment in Canada, 
accounts for over 60 per 
cent of the telephones in 
the country. Us subsidiary 
Northern Telecom is Canada’s 
largest manufacturer of tele* 
communications equipment. 

It will also freeze the 
salaries of top executives and 
pay rises for middle manage- 
ment will be limited to. 6 per 
cent until June next year. 
Staff promotions and recruit- 
ment are also to be restricted, 
the company said. 

Capital spending cuts will 
total C$280m (US$2 24m) over 
this year and next, and will 
apply to the regulated areas 
of the group’s activities. 

Operating expenses will' be re- 
duced by C$ 120 di ($96oi). 


SWISS FRANC 
STRAIGHTS 

Air Canada 64 92 100 

Asian Dov. Bank 7 82... . 100 

Aucelsa 74 92 80 

Australia 64 94 - 100 

Caa. Nat. I'Enarala 7 82 100 

CFE-Maxico 84 92 60 

Co-op. Danmark 8*, 92 
Crown Zellrbeh. 84 92 

EuropBrat 7*4 92 

First City Fin. 84 92... 

Ind. Fund Finland 64 92 

Kobo City 64 82 

Kommunlane 7*4 92 

Manitoba 7 92 

Mitsui OSK 64 92 

National Pwr. Co. 8 92 
Nippon T. and T. 64 82 ... 

OKB 74 92 100 

Oat. Post* par 74 92 ... 100 

Philip Morris 64 92. TOO 

Philip Morris 84 94 ... TOO 

Qusbsc 74 92 100 

RenFs 74 92 SO 

SokiBuf Pre. 54 92 WW 70 
See. Lux. de Cnt. 84 32 so 
Voraribsrp Kraft. 84 92 SO 


Chang* on 

Issued Bid - Offer day weak Yield 
1004101 +04 -04 6.15 
1004 1004' +04 —04 6.83 

98 984 -04 —04 8 01 

103** 1034 -84 -04 8.09 
10141014 0. +0*4 6.77 

1984 984 -04 -04 8.45 
1044 1044 +04 -04 7.58 
1014 1014 -04 -1 6-55 

10141014 —04 -04 7.03 
1034 1034 +04 +04 7.70 
984 984 0 -04 8.98 
394 1004. —04 — T4 8.12 
100*, 1004 -04 -04 7. IB 
1054 1054 *—04 -04 6.24 

100 1004 -04 —04 6.48 

103 -1034 -04 “04 7.51 
702 .1024 —04 -14 6.32 
1034 104 -0*. -04 7.19 
’MX341034 -04 © 7.00 

10341034+04-04 6.12 

101 1014 -04 —1 6.1 T 

10*4-105 . -04 -04 8.87 

99 994 —04 -04 7.86 
1034 103*4 -04 -04 5.27 
10fi4 M84 -04 +04 7.07 

102 1024 0- -1 8.45 


25 

100 

TOO 

25 

30 

100 


100 

TOO 

30 

100 


Average price ehangea..,'On day -04 on week -04 


•Con. P*c. S. 164 B9 CS 
Crd. Fancier 174 89 CS 
-Hudson Bay. 17 89 CS... 

Q. Jlyd. 1H4 89 (My) CS 
Quebec Prov: 1B4 89 CS 
Slinasaris'lff*. 89 CS ... 

U. Bk. Nwy. 94 90EUA 
Amro Bank 10 87 FI ... 

Bk. Macs & ff. 10 87 El 

Eurohmo 104 B9 FI 50 

Ireland 104 87 FI 75 

■phH. Lamps 104 87 FI..! 100 
World Bank 10 87 FI ... 150 

OKB 14 88 FFr ; 400 

•Solway at C. 144 86 Rv 200 

Acona'14 85 £ 20 

.-Beneficial . 14*4 90 £ (D) ; 20 

BNP 134 91 £ 15 

CECA 13*, 88 E 20 

Fin. Eir. Crad. 134 88 £ 15 

Gen. Bee. Co. 124 89 £ 50 

Hiram Walker 144 86 £ 25 

Privatbankan 144 88 £ 12 

Quebflc 154 87 £.... 35 

Read (Nd) NV 164 89 £ 25 

Royal Trusrco 14 86 L.. 12 

SOR Franca 154 92 £.-. 30 

Swed. Ex. Cr. 134 88 £ 20 

Eurofima 104 87’ LuxFr SOO 
EIB 94 88 LuxFr*.:....... 600 


50: 198 

30 • W9 • 994 . 0 -1. 17.25 
40 . *984 99 C -14T7.29 
50 1984 984 -04 -04 16.88 

50 r 1*984 994 +0 1 . +04 16J9 
40 t964 97 -0*» -04 T?-60 

18 . .- 894 »4 0 -0411.53 
150 '95 994 0 -0410.19 

75 384 89 -04 -04 1033 

1004 1004 -04 “04 1038 
984 994 -04 -0410.76 


, 1004 100*i -04 -0410.13 
984 984 0 -04 1038 
92 93 0 -041630 

914 924 - .0 0 .17.61 

96 57 0 +041537 

S^, 904 0 +041632 
934 M4 -04 +04 1A73 
954 864 -04 +0*. 1431 
954 9«4 -04 +1415.01 
924 934 —04 +04 14.06 
98 99 -04 +04 14.70 

904 954 -04 +041537' 
10741024 -04 +0414.73 
104 105 -04 +14 1558 
98 99 -04 +04 14.48 

100 1004 -04 +04 1539 
98 99 -04+041433 

964 964 O' —041131 
014 -824 . .9. -0411.64 


C 


FLOATING RATE 
NOTES - 


- .Spread Bid 


04 

04 

04 

04 

04 

04 

04 

04 

04 

*04 


Allied - Irish 54 92 0*, 

Bank of Montreal 54 91 04 
Bk. of Tokyo 64 91 (0) 

Bk Nova Scoilo 54 93 

BFCE 54 88 

BFCE 54 87 

Caisso Nat/ Tele. 54 90 

CCCE 5*4 2002 

Co-Ban Eurafln 54 91... 
Credit AoricoJe. 54 97... 
Crsritt Lvonnnis 5*« 37. „ 

Cradit Net 54 94 

Danmark. Knqdm; nt 92 
Dan Norsks Crad. 54 93 
Ind. -Bank Japan 54 88 04 

Ireland 54 89/94 04 

Kansallls Osaka 54 92 04 
Uoyds Eurofin 54 93 ... §04 
Long Term Crad. 54 92 04 
J. P. Morgen 54 97....:. 504 
Net. Wast. Fin. 5*. 91... §0*. 

New Zealand 54 87 04 

Niooon Credit 5** 90 ... 04 
OffaHore Mining- 54 91 0* 4 

PKbsnksn 5 91 04 

Scotland Int. 54 92 OJ» 

Sec. Pedfic 54 91 

Ronieta Ganarde 95 
Standard Chert. 54 91 
Sumitomn Fin, 54 B8... 

Sweden B 4 89 

Toronto Domin'n 54 92 


* 

OffbrC.dta C.cpn C.yM 


04* W 
04 98 


04 

0 *. 

04 

0*, 

04 

04 


984 9B4 36/10 1539 T^SS 
89 994 29/10 154 r- 1 ' 1534 

384 994 10/6 134 1338 
994 SBV 29/10 154 153B 

994 994 28/10 15 15.09 

994 994 27/7 164 ’ W31 
994 994 21/10 154 • 1533 
964 99 H/6 14.82 15.00 
99 994 14/10 16 : 1fc12 

99*. 994 24/9 1534 15^3 
994 994 1/10 18 16.06 

984 984 9/9 14.69. 1439 
‘ 994 25/8 15.44 • 1937 

98*. 4/12 15 1537 

99*. 99412/11 144 1437 
1*84 -99 25/11 144 1434 

994 99V 6/11 1531 1539 
994 994 29/10 174 1733 
984 984 29/11 144 1435 
984 99412/8 144 1437 
99*. 99415/7 15,19 1538 
99*, 100 7/10 15.66 1530 

994 994 10/B 16.06 16.16 
99 994 2/12 14.19 W39 . 

99 89417/6:144 I54S 

984 994 23/9. 15*. 1&5S 
994100 24/11 15 153* 

994 994 1/8 .15.31 ’1531 
984 994 18/11 14^ 15.03 
394 394 9/8 18 16.06 

99V 994 28/8 1531 16-41 
99 994 11/8 -164 18-69 


Hein? 

llorgr 

Sites 


UEito. 

HxC 




fea-i 


Average price changes... On day O on wtak 0 


COwveimBLE 

BONDS 

Aiincmcto 54 98 7/81 933 

Bow Valley Inv. 8 95 .. 4/8123.12 
Bridgestone Tire 54 36 3/82 470 

Canon 64 95 1/81 829 

Daiwa Secs. 5*, 96 12/81 513.3 

Fujitsu Fsnuc 44 96 10/81 5641 

Furukawa Elec. 54. 96... 7/81 300 
Hansen 0/5. Fin. 94 96. 8/81 1.36 
Hitachi Cable 54 96 ... . 2/82 515 
Hitachi Crad, Con. 5 96 7/81 1812 

Honda Motor 54 97 3/82 841 

Inchcape 8 2/81 4.5S 

Kawasaki 54 96 9/81 229 

Marul 6 98 ; 7/81 846.4 

Minolta Camera 5 96... 10/Bi 826.4 

Minorca. 94 37 5/82 8.18' 

Murata 5*, 96 '7/81 2168 

NKK 6436 J; 7/81 188 

Nippon Chore! -C. 5 91.:. 10/81 819 

Nippon Electric 54:97... ; 2/S2 846 

Orient Finance 54 97 ...-.’3/82 T2D5 
Sanyo Electric 5. 96... ...10/81 .652 

Sumitomo Elec. 54.97... 3/82E77.3 
Sumitomo Mat 5V96... 10/81 296.1 
Swiss Bk Con 64 90... 9/80 191 
Knniahiroku 6 90 DM 2/R2 .685 
Mitsubishi H. 6 89 DM'2/82' 283 


Cnv. -Cnv.- : ChO: 4 " 

date price Bid Offer dev. . Pram 
84 854 -^OV “430 

994101 U 86.61 
82 - 834 -04 -138 
874 894 +04 7.08 
164 66 -04. 1-2 

82 85 -3 4.73 

90. 91*,. 0, — :230 

196 . 97 0 —7.80 

834 854 -24 .I-* 
■7*4 764 -14 '5.01 
794 81 -14 “0.77 
1584. 60 .+04. ISJ 6 
594 614 —14 436 
100 1014-14 -238 
61 624 —04 Z 238 

1864 88 .0. 3836 

884 684 0 1 axa 
!71 - 724 -O'. -2S^ 
63 ,:65 O .1733 
914-924 O 6.W 
93 . ««4.+04 12.23 
68 '694 -^04 12JB 
,874 884 -04 8.64 
.63 644 -04 3833 

734 754 -44 2750 
10041014 -04 *■« 
914 924 +14 22.75 


Change on 

YEN STRAIGHTS Issdaif Bid Offer day week Yield 
Aslan Dev. Bk. 84 91... T5 WO 101 O +04 8.16 

Int.-Amer. Dev. 84 91... IS 101*, 10Z4 ' 0 -14 8.54 

Japan Airlines 7*. 87. _ 9 964 984 0 —04 830 

New Zealand 84 87 ... 15-. ' 994 1004 — 04 +04 8.34 

World Bank 6*. 92 20 98 99V 0 -0», 8.46 

Average pries changes... On day 0 on week -04 


. * No' Information available p r evious day's prjea. 
t Only one. market maker supplied a priced 

Straight Bands: The yield >E'tha yield to redemption of the 
mid-price: .die amount issued- 1 3 in jniiliona oT currency 
units except lor Yen bonds where It is In bilHdiis« 
Change on- Week —Change over price a : weak earner. 

Floating Rote Notes: Denominated in .dollars, unless etha»“ 
wiae Indicated. Coupon shewn is' minimum. CA» I *II*W 
next coupon becomes effective. Spread* Margin above 
six-month offered- rata (t dirae^mondu S sbove meap 
rate) lor U.S.. dollars. . C.cpn=>The currant , coupon* 
C.yldTThe currant yield. . 

Convertible Bonds: Denominated In. dollera mriaas other- 
wise Indicated.. Chg. day ■» Change on day., Cnyi.data* 
First date for conversion into shares. -‘Cnv. pHM?* 

Nominal • amount of bond par shore expieseed 
currency of share at conversion raw fixed, at ieeiw- 
Pram->PsreemaBe pramiunt of the currant bffectivi P"* 
of ecffuiring shores' via die bond~-onrer tbe .most rN* 0 * . 
price of the. shares. . 


O The Financial Timas f «*», i op " BeptSBUcrldn3B' wind* 
or in part id any form not permitted without -wriO» 
tnnsent suppl<od by DATA^IffiAM InjWffMiOiwL 







the 


10 





Financial Times Thursday. June 10 1982 

Conpanies and Market* 


29 


INTERNATIONAL COMPANIES and FINANCE 



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v' 8 Jfe. 

V ri:.? * V> 




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as;* 


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' ■ ;:jl- 
' r t 1? 

-if 4 


ERVICE 



BY WILLIAM DUUfOftCE. I40RDIC HHTOR, N STOCKHOLM 


VOLVO is paying 577m for 
shares in three oil companies 
belonging to- the Hamilton 
Brothers group of the TJJS. It' 
is baying out-the stock: held by 
Mr Ferris Hamilton, who foun- 
ded the group together with his 
brother Frederic. 

Mr Pete- GyUenhammar, Volvo 
m anag in g director, said the pur- 
chase would open up for the 
Swedish motor industrial and' 
trading' group opportunities 
within the energy sector which 
went fai\ beyond the initial in-, 
vestment" Volvo would,' for in- 
stance, ..acquire participating 
rights in 29 British North Sea 
blocks, including the Argyll and 
Bruce Fields. 

Volvo will obtain about 25 
per cent *of the stock in Hamg- 
ton Brothers Petroleum Corpor- 
ation (Peteorp) of . Denver, 
Colorado, whose shares are 
traded over the counter, in the 
U.S. 

It will acquire 10 per dent of 
Hamilton Oil Great Britain 
CHOGB), which has a London 
Stock Exchange listing and 
holds the lights to the British 
fields. 


Lastly, it will get- W per cent 
of Hamilton Brothers .Oil Com- 
pany (OilCo). a privately owned. 
; management company -partid-- 
paring in several joint ventures . 
with other American and inter- 
national companies exploring 
for and producing oil and gas. 

Letters of intent have been 
signed, and the deal is expec- 
ted to be completed by July 15. 
It is subject, to the approval of 
the. U.S. and Swedish authori- 
ties 

In announcing Vofcvo’s cur- 
rent SKr 600m ($103ra) rights 
issue eariaer this year Hr GyHe 
Hammar stated that Volvo was 
in tiie market for “an existing: 
oil company with good nQ and 
gas reserves*’ for its subsidiary. - 
Volvo Energy. Legal and tax 
issues wQl . decide whether 
Volvo Energy or Volvo’s. North. 
American subsidiary wall for- 
mally buy Mr Hamilton’s shares 
but Volvo Energy wSH -have- 
executive responsibility. . 

Hamilton Peteorp reported 
earnings of 533m on a $I60m 
turnover last year. It is active In. 
oil and gas exploration and pro- 
duction in the &&, Canada and 


the North Sea and to. a smaller 
extent elsewhere. It owned 
proven -reserves of oil- and gas 
equivalent to 69 Am barrels at 
tiie end of 1981 and produced 
during. the year an average of 
5,748 barrels a day. 

HOGB made a pre-tax profit 
of £13m ($23m) on a £ 20 m 
turnover last year. Its share of 
output was 2,567 barrels a day 
on average and' its proven 
reserves totalled 4.58m bar- 
rels.' 

: Mr Gyflenhamar said cash- 
flow from .Volvo's Hamilton 
investment woold initially be 
Hmited <to dividends but the 
.opportunities for participating 
in new oil and gas exploration 
would be -restricted only by 
Volvo’s spending capacity. The 
capacity of Hamilton's manage- 
ment was much larger than the 
she of its current holdings. 

.'At- tiie. end- of March- Volvo 
held liquid assets totalling just 
under SKr 9bn. It is taking up 
new share eapbai amounting to 
well over SKr ibn through its 
rights -Issue and issues offered 
through subsidiaries. 

Volvo Energy, which incurred 



Ur Tehr Gyllenhammar 


a loss of SKr 160m last year, 
plans to invest about SKr 150m 
tins. year. -Volvo also has a 
share of just over 20 per cent 
in the International Energy 
Development Corporation 
(1EDC). which is investing in 
exploration and production and 
in which the senior partner is 
the Kuwait Petroleum Corpora- 
tion. 

In taking over Hie Beijer- 
invest group last yean Volvo 
also acquired the Scandinavian 
Trading Company, which runs 
a profitable oil trading business 
and holds some exploration and 
production rights in Texas. 


Sales at Hunter Douglas 
decline in first quarter 


BY WAITER BULB tN AMSTERDAM 


HUNTER DOUGLAS, the 
Dutch-based . ' producer of 
aluminium products, reports 
1982 first quarter sales of 
5128.6m, compared with 5139.5m 
for the same period last year. 

The company, which incurred 
a loss of $8.5m .in 1981, had 
been expecting an improvement 
in trading tins year out points 
out that first quarter sales 'tradi- 
tionally represent less, than 25 
per emit of the year’s ■ total. 
First quarter earnhig s will not 
be reported until September. 

Hunter Douglas- has exten- 
sive interests in the U.S., West 
Gennany, Belgium, Latin 
America, Canada and Australia, 
and attributes its fall in sales 
in. part to the continuing world- 
wide recession. In addition, 
however, it notes' that many of 


the currencies in which' it 
trades have fallen relative to 
the U.S. ' dollar, in which it 
accounts. 

A statement from the: com- 
pany points out,' in fact, that 
this year’s first quarter results 
are actually better than those of 
last year, “reflecting the effect 
of the ongoing recovery pro- 
grame.” 

Last year, : Himter Douglas 
engaged in a major reorganisa- 
tion of its activities, dosing 
several plants in West Germany 
and halting - . production 
temporarily at. its casting and 
rolling wi»n« in the U.S. It says 
now that the restructuring has 
greatly increased its ability to 
cope with recession and that it 
still expects an upturn ' in 
performance over 1982. 


Swiss travel agent lifts 
earnings and dividend 


. BY JOHN WICKS IN ZURICH 

REISEBUERO KUONI, (the 
Swiss travel agency, is to recom- 
mend an increase in its dividend 
from 12 to 14 per cent for 1981 
after a 28 per cent rise, in net 
profits to. SwFr 3.26m ( 51.59m) _ 
Mr Jack Bolli. ' the chairman, 
said <the earnings figure was 
above expectations and came 
dose to, tbe 1979 record. 

Kuoni. which has 111 brandies 
in 17 different countries, last 
year showed a record turnover 
of SwFr 1.031m, of Which 
SwFr 592m originated - in 
Switzerland. 

Mr Bolli said Kuoni viewed 
tiie future optimistically but 
without illusions. The group, 
one of. the world's biggest travel 
agencies, expects to be able to 
“ defend its position ” on the 
market mid intends to add new 


package -tours in the lower price 
range. 

• Operating profits of. Panal- 
pina, forwarding agent, reached 
a record -SwFr 352m (5173m) 
last year, a 6 per cent increase. 
This follows a rise of 2 .per 
cent in turnover to SwFr 2.42bn 
and it allows the payment of 
an unchanged 12 per cent 
dividend. 

Turnover and operating 
profits are likely to grow at 
about the same rate this year 
as in 1981, says Herr Walter 
Schneider, the chairman. Panal- 
pina has taken steps to counter 
what Herr Schneider calls a 
“top heavy” share of European 
business. During 1981, new 
offices were set up in -the U.S., 
Canada, Argentina, Brazil, Chile 
and Italy. 


Montedison 
move to 
buy XJ.S. 
group { 

By James Buxton in Rome 

MONTEDISON, the troubled 
itoti a o chemical group whose 
pharmaceuticals division is 
currently Its brightest spot, Is 
to buy a small and successful - 
US. pharmaceuticals concern, 
Kallestad Laboratories. 

Kallestad, which is based at 
Austin. Texas, is : to merge 
with tbe U.S. subsidiary of 
Montedison International, the 
Zorich-based holding com-, 
pany. Provided . Kallestad 
shareholders approve, they 
will be offered $25 for each 
of their shares 

Kallestad has made impor- 
tant progress In diagnostic 
systems in the immunological 
field. In the past six-years it 
has grown by an average of 
31 per cent a year and last 
year had a turnover of about 
$20m. It sells In the U.S. and 
exports to Canada, the Far 
East and South Africa. 

For Montedison the acquisi- 
tion fits in with Its strategy of 
taking research and develop- 
ment shortcuts by buying 
knowhow. The sum of 
L200bn (5150m) was set aside 
for acquisitions of this kind 
last year, and this is the first 
to materialise. 


ACEC wipes 
out losses 

6y Our Financial Staff 

THE BELGIAN heavy 
electrical equipment group, 
Ateliers de Construction 
Electriquc de Charleroi, has 
wiped out its, accumulated 
trading deficit through an 
asset revaluation. 

What the company 
describes as “ good perfor- 
mances ** in a number of 
divisions led. to the asset 
revaluation which in turn has 
transformed an accumulated 
deficit of BFr 614m into a 
profit of BFr 614m ($26,450). 

ACEC said the revaluation 
should make a dividend pos- 
sible in future and permit 
planning for new capitaL In 
1981 the company returned 
net profits of BFr 128.4m 
against BFr 114.9m. 


Thomson to produce JVC 
video range under licence 


BY TERRY DODSWOR7H M PARIS 


THOMSON - BRANDT. the 
recently - nationalised French 
electronics group, has reached 
agreement to manufacture the 
JVC range of video tape 
recorders under licence from 
the Japanese company. Produc- 
tion is expected to start within 
a few months, with the aim of 
building up to an output of 
100.000 units by 1983. 

The Thomson decision comes 
about a year after the com- 
pany’s exit from a joint project 
to manufacture JVC’s video 
equipment in Europe in 
collaboration with Thorn EMI 
of the UK and AEG Telefanken 
of West Germany.' 

Thomson was to have had 
responsibility for the video 
camera part of this deal, but 
pulled out under pressure from 


the Government. which 
apparently felt that the com- 
pany would have too -limited a 
role m the joint venture. 

'Hie video project illustrates 
the new orientation of 
Thomson-Brandt towards the 
consumer electronics industries. 
It follows the company's recent 
abandonment of its business- 
orientated videodisc pro- 
gramme; which was dropped in 
favour of plans to- develop 
mass-market technology in this 
field. 

Under the government plans 
for the nationalised industry, 
Thomson has been given tbe 
role of helping develop a 
broadly-based French consumer 
electronics industry, a sector in 
which France is a big importer. 
Dutch Philips also decided 


recently to begin manufactur- 
ing its own range of video 
recorders in France at its 
Radiotechnique subsidiary. 

O' Christian Dior, the fashion 
house which ' is part ' of the 
troubled Agach e-WiH ot group, 
reports a rise of 42 per cent 
to FFr 2.7bn ($432m) in world- 
wide sales for 19S1. Profits be- 
fore depreciation and risk pro- 
visions were 36 per cent higher 
at FFr 78m. 

The company is working on 
a medium-terra development 
plan, details of which wiH be 
made public by the end of' 
October. Because of the pre- 
ponderance of “ indirect n sales 
through licensees, .Dior wants 
to get a better grip on its 
4 ‘ direct " sales. 


German Brown Boveri falters 


BY OUR FINANCIAL STAFF 

THE WEAK domestic economy 
and poor margins on export 
business continue to depress the 
results of Brown Boveri und 
Cie, the West German sub- 
sidiary of the Swiss engineer- 
ing group. 

This was explained to the 
annual meeting by / Herr 
Herbert G assert, the board 
chairman. He said both turn- 
over and incoming orders for 
the first four months of 1982 
rose by only 2 per cent on a 
group basis from the levels 
of the comparable 1981 period. 

Despite an increase of around 


a sixth in sales, after tax profits 
last year dropped by 34 per 
cent to DM 20.2m (58.4m) and 
as a result the dividend was 
reduced from DM 8 a share to 
DM 6. 

Commenting on tbe decision 
to reduce the dividend for 1981. 
Herr Gassert sadd BBC couid 
have maintained tbe dividend if 
last year’s collapse in profits 
had been a one-time occurrence 
with signs of an immediate 
recovery. “Unfortunately, this 
was not the case.” 

Herr Gassert said domestic 
business was particularly hard 


hit while foreign business suf- 
fered from strong competition 
on prices and other contract 
conditions. Apart from one 
order for a steam-fired power 
station, business in industrial; 
plant construction was poor 
In addition the mass produc- 
tion goods division, with its- 
strong dependence on the- 
domestic housing industry, was 
still suffering a weak sales 
volume. This division would 
probably benefit from any 
recovery in the domestic 
economy arising from falling; 
interest rates. t 


Norwegian bank moves ahead 


BY FAY G JESTER IN OSLO . 

NORWAY’S largest commercial 
bank. Den Norske Creditbank 
(DnC). reports increased profits 
for the first four months of this 
year compared with the same 
period of 1981, despite continu- 
ing tight government credit 
curbs whicl) have hit profit- 
ability. 

Operating profits — before 


provision for . bad debts — 
readied NRr 128m ($21m) in 
January-April, or 1.29 per cent 
of average capital employed. 
This compares with NKr 109.4m 
and 1.32 per cent 
Net interest earnings, in- 
cluding commission on credit 
and dividends received, totalled 
NKr 327.3m, corresponding to 


3.3 per cent of average capital:, 
employed. This compares with 
NRr 263.8m and 3.18 per cent. . 

The report says there is no 
sign of any significant relaxa- 
tion in the Government’s tight- 
credit policy, though it notes.’ 
that primary reserve requires 
meats were reduced from May 1': 
to 8 per cent from 10 per cent: 






This advertisement cantplies w&h the requirements of the Comal of The Stock Exchange. 

. . . U.S. $150,000,000 

Chemical New York N.V. 

(Incorporated with Urrdted liability in the Netherlands Antilles) 

Guaranteed Floating Rate Subordinated Notes Due 1994 

Guaranteed on a subordinated basis as to payment of principal and interest by 

Chemical New York Corporation 

(Incorporated in Delaware) . 

The. foUamns have agreed to subscribe or procure stdrsanbers, for the Votes: 


Credit Smsse East Boston limited 
Deutsche Bank AktiengeseDschaft 
Kleinwort, Benson limited 
Morgan Stanley International 
Swiss Bank Corporation International 


Chemical Bank International limited 

• • • " . % . ■ 

Goldman Sadis International Corp. 
Merrill Lynch International & Co. 
. Salomon Brothers International 
Union Bank of Switzerland (Securities) 


Tbe issae price of the Notes is 200 percent Tbe Notes have been admitted to the Official list by the Coimal of 

_ M . « V. 1" 1 L.J.1 - ; — - J-T ■ ----- ----- -1 .- - 


Interest is payable quarterly in arreais in March, Jane, September and JDaemier, the first payment being made 
in September 1982. 

FriU particulars of Chemical New York: N.V., Chemical New York Cotpor^ticm and the Notes are available in 
the Extel Statistical Service and may be obtained during usual busness hoars .up to 'and including 24th June, 1982 
lhmi the brokers to the issae: . 

Cazenove&Cfe,, 

12 Tokenbonse Yard, ; . . 

. I«flaaEC2R7AN 

• - ' lOtii Jane, 1982: . v'':. . - - 


' This announcement appears ass matter of record only. 



4309 * 


INTERNATIONAL BANK FOR RECONSTRUCTION 

AND DEVELOPMENT 

Dfe 100,000,000 

Fixed Rate Banktoan 

. . ‘ * * 

. ; . :.. / K Arranged and provided by 

Amsferdam-Rotterdam Bank N.V. 

May. 1382 ' ' ■' . 



AD of these Securities haring been sold, this announcement appears as a matter of record only. 


New Issue/ May, 1982 


$75,000,000 


Republic New York Corporation 

16% Sinking Fund Debentures Due 2007 


Salomon Brothers Inc 


Merrill Lynch White Weld Capital Markets Group 

HsroU Lyncb, Pierce, Femur &Snliti iscarpoiatcd 


Morgan Stanley & Co. 

Goldman, Sachs & Co. 

Bache Halsey Stuart Shields 

iBCoperateil 

Donaldson, Lufkin & Jenrette 

SenriSst CorporeSon • 

Keefe, Bruyette & Woods, Inc. 


L. F. Rothschild, Unterfaerg, Towbm 
jSmith Barney, Harris Upham & Co. 
Wertbeim & Cos ine. 

ABD Securities Corporation 
Dafwa Securities America Inc. 


Bear, Stearns & Co. 

The First Boston Corporation 

Shearson/American Express Inc. 
Blyth Eastman Paine Webber Dillon, Read & Co. Inc; 

Incorporated 

Drexe l Burnham Lambert E. F- Hutton & Company Inc. 

Incorporated 

Kidder, Peabody & Co. Lazard Freres & Co. 

In co rp ora ted 

M. A. Schaplro & Co., Inc. 


Affantic Capital 

C or p orati o n 


Robert Fleming 

Incorporated -. 


Kleinwort, Benson 

Incorporated 


Nomura Securities International, Inc. 


Warburg Paribas Becker 

A. G. Sector 

Dean Witter Reynolds Inc. 
Basle Securities Corporation 
EuroPartners Securities Corporation 
The Nikko Securities Co. 

International, !">• 

Yamaichi International (America), Inc. 


Weekly net asset value 

Tokyo Pacific Holdings (Seaboard) N.V. 

ob June, 7th 1982, U.S456.53 
Listed on the Amsterdam Stock Exchange 

Information: Pierson, Hekiring & Pierson N.V., 

Hereogracht214, 1016 BS Amsterdam, 


YONTOpEL EUROBOND INDICES 
1ASJ6.= 


8.B.82 1.6.82 AVERAGE YIELD 8.6.82 1.6.82 

95.72 - 96. ID DM BondB 8.164 &081 

HrL oona* a nuua 99.23 .90.67 HFL Bonds & Notes 10.051 10.014 

V.S. S Serf Bands „ S9.Si . 9064 U.S. $ Stit. Bonds 14.104 13518 

Can. Dollar Bonds ’ . .91.77 82.17 Can.- Dollar Bonds . 15.400 15.284 


PRICE INDEX- .. 

DM Bonds 

HFL Bonds & Notes 


EBCO FINANCE B.V. 

U.S.$ 15,000,000 . 

Guaranteed Floating Rate Notes 1988 

(Conditionally Extendable at the Noteholder's Option to 1991) 
Guaranteed on a subordinated basis as to payment 
of principal, premium (if any) and interest by 

European Banking Company 
Limited 

Notices hereby $h»n . 

pursuantto the^ Terms and Conditions of the Noteslhat 
for the six months from > 

70th June. ?982 io 10th December, 7922 
- the Notes w9 cany aimterostiata of ■ 

15^s%p8r annum. 

- On lOih December, 1982 interest of US.S784.74wg be 
. ehra per US. S1Q,000 note tor coupon Na2. 


10th June, 1982 


European AmaicanBartingCoipoBtan 
AgsntBank 




May 26,1982- 


*° u8i|, S* 


rm \ 


$366,000,000 


%.ora*°* 


Alaska Housing Finance 


1 5 Year Loan Facility 


arranged by 


Salomon Brothers Iric 


provided by 


Banque de Paris et des Pays-Bas 


Barclays Bank Group 


Citibank, N.A. 


The Long-Term Credit Bank of Japan, Limited 


Seattle-First National Bank 


agent 


Barclays Bank International Limited 


THE FRENCH ART OF FINE LIVING 
COMES TO BAGHDAD 


Now, in addition to Abu Dhabi, Cairo, 
Damascus, Dhahran,. Jeddah, Khartoum, 
Kuwait, Palmyra, LataMa and Sharjah, you 
can find the French art of fine living in 
Baghdad, the city of the “Arabian Nights”. 

The address of this unique “savoir- 
vivre”: Hotel Meridien, Street 47, MahaJlat 
102, Baghdad, Iraq. 

Reservation and information: see 
your travel agent, your Air France ticket 
office or in Paris call 757.15.70, in London 
493.06.09. 


A* • 

lAV 

vmm\ 


LES HOTELS D'AIR FRANCE 


THE FRENCH STYLE OF FINE LIVING IN THE WORTH 


SWIRE PACIFIC LIMITED 







\ . Financial - 

INTLi COMPANIES & 


AUSTRALIA'S HONEYMOON 
with cash management trusts 
is still in full swing; -even 
though. : interest rales have now 
come off the bosL Indeed. with 
total assets of around A$lJ25hn 
(U-S.Sl.32bn),. the trusts — 
which now number 13 — are 
viewed as among the most suc- 
cessful investment vehicles in- 
troduced down under. 


the first. -sev^n months. "At last 
March 31 the' Hill Samuel total 
was A$519 xel It now exceeds 
A 5610m, spread among more 
than SO^QQO.fmre&tons, according 
to Mr David Adams,' general 
manager of the trust 

Other merchant hanks manag- 
ing trusts are Bank of America, 
International Pacific Corpora- 
tion, Aiic Holdings, Triconti- 


Earlier this year, Mr Malcolm 
Fraser, the Australian Prime 
Minister, was reported to have 
accused the trusts of causing a 
massive drain of funds from the 
home building industry, and 
was. promptly rounded upon by 
one indignant critic for a 
“damnable lack of understand- 
ing " of how things work. ~ 

■ Since then. Mr. Fraser has 
fallen silent and the trusts 
(similar to the money market 
funds of the U.S.) have pros- 
pered greatly, to the point 
where they were described this 
week 'as enshrining the very 
qualities called for in the Camp- 
bell Committee report on the 
Australian • financial system: 
“ efficiency. competitiveness, 
and the opening up of commer- 
cially rated opportunities to the 
man in the street" 

The first, and still easily the 
biggest ‘of the trusts was Hill 
Samuel’s, launched , in Decem- 
ber 1980. In its first 12 months 
it was thought it would attract 
about A$100ro. In the event 
investors poured in A$250m in 


HILL SAMUEL - 
: CASH - - 
18 * -MANAGEMENT 
. TRUST ; 

. -ABUSE NErYIHJB 


nental Corporation, and Roy- 
Aust which is. a wholly-owned 
subsidiary of the Royal Bank 
of Canada, 

Two are run by sharebrokers: 
PP Cash Management Trust 

(Potter Partners) ' and Ordmin 
Cash Management Trust (Ord 
Minnett). *- 
' Two are am by* trust com- 
panies: Aft Money Market Trust, 


and -Equitable Group Cash Man- 
agement Trust, while the . re- 
maining three are run by ^Qie 
Australian Bazik, •• Building 
Society Resources fan : invest- 
ment 'company owned by Vic- . 
torian- bunding societies),; and' 
by Brick Securities; ' 

One of HUl Samuel’s fastest 
growing rivals is the Trihcon- 
tineotal Cash : ■ Management ; 
Trust. Launched on March; 29 
this year, it notched an Impres-' 
sive A$75m<m de posts In rts 
first six and a half months, , and 
has assets now put at A$135riu - 
In- the . marketing battle that 
baa followed the birth of the 
trusts, the BA Trust had the 
wit (or the effrontery) to sign 
up - fortner Prime Monster Sir. 
William McMahon for an ad vet* 
rising ' campaign that helped 
boost investment from. A?50m 1 
on April ltd almost A?1 00m in 
less than a month: . Assets of the 
BA Trust now stand at L A5112uL . 
spread a mo n g more than 12,000 
investors. . ‘ 

Some of the trusts invest only 
in government securities, such 
as Treasury notes add govern- 
ment' bonds, as well as 1 bank- 
backed-' ■ piper, all with 
maturities of. less than a year, 
or much shorter, in most cases. 
Others also invest, in mortgage 1 
certificates and corporate paper.’, 
and one dabbles in Interest rate 
futures. All funds in the. trusts _ 
are on 24Siour caU, with : the • 
minimum -investor deposit rang- 1 
ing from A$ 1,000 to A$5,00Q. . . 
An undoubted reason for .the 


trusts’ success ; is-. Australia's 
current 111 ®! level of ’ interest • 
rates; though'tiietrasts main tain, 
that toey^ -are^bere <o -stay.- At - 
HRL Samuel,: 'net-tields bave; 
risea steadily: ? An investor hold- 
ing . units from 'Aprils 1981 , . to'- 
March ■.;31'. -1952 a : would 'J&a'iy 
averaged 14.63 per cent a year.. 

- "Among Ihe-bighest ddfly net 
yields -quoted tirfe : week, -were: 
Liquidity Management Services 
Trust, ■'■ Ift24 : per \ cent; Tlicoifc 
tinehtal -Cash * 'Management 
Trust, 18.79 per ;'ce'rit;. andAua- - 
■tralian Ready -Gash Trust;M8.74 “ 
per cent. -' -rv - w v- 

Llfe in the market is tough/ ' 
Mr - Adams believes the; break- 
even point is vAjlOOm-'oE assets, ' 
implying that, the ‘ majority,: qf 
trusts are istro&gltag-. A ^3-yem>_. 
old who •. trained as aL.resear&. . 
chemist before Joining Citicorp, - 


and theiL Hill ' Samud,:“'Mx' 


Adams Isays' “the - -trusis.j are' 
successful because they’re .'good, 
distributors, :Vroriong^n a - 
spread of about t "per. rent.’.. - 
“Consumer, awareness ofhigh 
interest rates - has never been 
higher," he says.. “ Today, 
-consumer is looking -for. 
security, . liquidity, and rate. . 
The cash trusts offer- all three.” 

1 How. high .will they' ffyt 
jections - derived' : from , irtfce, 
experience, of " the U.S.; 

-market funds; have., suggested . 
that the mists’ -.'assets'.- .tiJulA' 
rpach A$8bn.’-‘ Tbls. figtiw [g 
highly unrealistic, butihey brie 
growth lh tfierol yet ' #; .r V V 1 


Marginal increase for Kubota 


Grace Brothers 
wins fight for V 


BY YOK.O SHI BATA IN TOKYO 


KUBOTA, the Japanese manu- 
facturer of cast iron pipes, and 
agricuitural. industrial, and 
housing equipment, posted a 52 
per cent rise in unconsolidated 
pre-tax . profits to Y27.4bn 
(Slllm) in the year to April 
15, 1982 on turnover of 

Y53&23bn, up 2.8 per cent 
Net profits were 52 per cent 
higher at Y15.46bn and profits 
per share were Y11.63 compared 
with Y11.10. 


Sales of farm machinery, the 
company’s main product line 
were affected by last year's cold 
summer. and fell by 3 per cent 
to account for 38.4 per cent of 
the totaL Sales of pipes 


advanced 13.5 per; cent however, 
to account for 32 per cent of the 
total, reflecting a doubling of 
exports. Industrial machinery 
sales rose by 2.8 per tent 
accounting for 14.4 per cent of 
turnover- Reflecting the slug- 
gishness of the domestic- 'hous- 
ing construction industry, sales, 
of housing equipment and build- 
ing materials fell by 2.3 per cent 
to account for 7.1 per cent - 

With the main impetus coin- 
ing from pipes, exports jumped 
by 47.7 per cent Ip .account for 
20.6 per cent of total sales! 

The effects of the increase in 
the cost of riies, 'put at -YlObn, 
on earnings, following the ex- 


port expansion, was more than 
offset by exchange gains of 
Y2bn helped by the yen's depre- 
dation against the US. dollar, 
and by tbe effects of rationali- 
sation. 


discount chain : 


■, By Michael Th om 
in Sydney. ' '. . -., ; -r- i - 

GRACE BROTHERS. 'i one. . ,6f 
Australia’s lea ding re tzSlerev hri 
won the, struggle -for. control 


The company expects .a con- 
tinued expans ion in the - export 
of pipes in the current year. 
Sales of farm machinery which 
have ' been sluggish for several 
years, are also expected to pick 
up helped; by replacement 
demand: ' Pretax profits . are 
projected. at Y30bn, up .by, fi-i? 
per cent, net profits at Y16bn, 
up by 3.5 per cent, and sales 
at Y580bn, up by 82 per cent; 


of, 'Norman-- . Ross Discounts 
which. Operates^ stores iq Nciy . 
South Wales jiud OueensJamL.^}:. 

Yesterday, ; Grace • Brotoeig: 
raised its earlier -offer -of. A$5 ■ 
a. share to'- A$6.02 per hhaiit 
valuing Norman Ross at a Ltde. 
more than A$21m T (US£'2LSiujI; 

.-Tbe.pffer.prpved sufficient to 
r extend the: Grace Brothers s take .-' 
-from~virtoaily,2(>':per cent,» : : 
around 55 per cent.- ' 

' In a puzzUng.manbcuvre. ; 
tons Bond, property aifi- 
retailing arrirof Bt»d ^Ctrtporaf . 
tion, subsequently announced a -• 

1 counter-offer- 'of'. A$6.50 'per: 
toare. But 'foy that time, the 
Norman Ross ' founders, Mr 
Gerry Harvey and Mr Ian Nor> ■ 
man. had. sold. titeir own shares, 
to Grace Brothers. 

Waltons Bohd has established - 
a 20 pa- , cent stake in the dis- 
count ehain, and. stands to make 
a sizeable capital gain._ -^How- 
ever, rumours persist that Its 
real target', is' Grace Brothers 

Swan Brewery and Waltons 
Bond are now the main planks 
of Bond Corporation, the main 
quoted company for the 
interests of Mr. Alan Bond, the 
Perth businessman, which Mat 
week raised A$188m thraiigh 
the sale of its interests in cdnt 
parties engaged in 'toe Cooper - 
Basin oil and ' gas project 


Eibit Computers back in profit 


BY L. DANIEL IN TEL AVIV 


ELBIT COMPUTERS, a subsi- 
diary of ELron Electronics In- 
dustries of Haifa, which is 
traded in the U.S. over the 
counter markets, reports a 
dramatic return to profitability 
in the year ended March 31, 
17982, thanks partly to higher 
sales and partly to a sharp 
reduction in marketing expenses 
following re-organisation in this 
field. 

Eibit, which makes a range 
of mini-computers for civilian 
and military use as well as mili- 
tary electronics systems, came 
up with a net profit of $944,000, 
or 21 cents per share, as against 
a loss of $3.9m in 1980-81. 


Sales increased to $72.7m from 
$61 .9m a year earlier and the 
.backlog of orders, 'to be filled 
over the next two years, stood at 
$120m at end-March 1982, com- 
pared with $78m a year earlier. 


■ The parent company. Elron, 
last October ipcreased its hold; 
log in 1 Eibit' to 68 per cent 
through a share swap between 
itself and Control ; Data 
Corporation of the .UJSL in 
which Control Data acquired 
9 per cent of the outstanding 
capital of Elron. The balance 
of Eibit shares is held by the 
public- and- ;.the company's 
employees. . ' 


<B~ The r Hassneh insurance 
group, which accounts for 
slightly over a quarter of. all 
insurance written in Israeli, v : 
reports that its profit, premium 
.income, assets, investments and 
reserves all showed real growth 
in 1981, despite inflation of 103 
percent.. ; ... ... 

Balance-sheet total rose -. tgr 
170 per cent to- SH 5.2bn 
fU.S.$333m. at the March 31 
exchange rate), pretax profit 
increased by 151 per- cent to 
SH 194m and after-tax profit by 
108.6 per cent, to SH 116.4m. 


, - 

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Puzzle over Hongkong 
Electric holding solved 


joaotradi ' 


SONATRACH 


BY ROBERT COTTR£LL IN HONG KONG 


THE PL1ZZLING' tale of just 
who does own a significant 
chunk of Hongkong Electric 
Holdings, one of the , Colony’s 
two electric utilities, seems to 
be mating towards a. conclusion. 
The Hongkong Land Company 
led a market raid to acquire 
one-third of Electric's equity- 
last month with an undisclosed 
partner somewhere in the back- 
ground, confidently believed to 
be Carrian Investment the fast- 
diversifying property group. 
But after Carrian's annual meet- 
ing last week. Mr John Mar- 


shall, tbe managing director, 
was quoted as saying that the 
group owned no Electric shares. 

While Mr’ Marshall was not 
available for comment yester- 
day, sources outside Carrian say 
that the group, does have .An 
agreement tb buy one-third Of 
Land’s' Electric holding, which 
was not yet been exercised but 
is expected to be exercised soon. 
If correct that would leave 
Land with more than 20 per 
cent of Electric, giving the new 
investment, associate status. ' - 


SocJetB Nationals pour la Recherche, la Prodactioo, Ic Transport, 
b Transformation ct la Conmercixlbatkm des Hydroeurlmm 


U.s.$50,000,0p0 Guaranteed Floating 
Rate Notes due 198$ to 1992 . 


For the six months V 
9th June, 1982 to 9th December; 1982 
the Notes will carry an . • • 
interest rate of 15%% per annum ■ 


Lisred oa the Luxembourg Stock Exchange ; 
By: Bankets Tnjst Company, London 
Agent Bank 


CONVERSION OF PREFERENCE SHARES HELD IN 
SWIRE PROPERTIES LIMITED 


SWIRE PROPERTIES LIMITED 


CONVERSION OF PREFERENCE SHARES 


The Directors of Swire Pacific Limited announce that the Company 
has today given notice to exercise its rights to convert on 30th June 
19S2 its holding of the whole of the 170,500,900 9$% convertible 
cumulative redeemable preference shares 19S5/S7 of HK$1.00 each 
in issue by Swire Properties Limited into fully paid ordinary shares 
of that company. 

As a result of the conversion, the Company will receive, credited 
as fully paid, 93,000,000 ordinary shares of HK$1.00 each in Swire 
Properties Limited, increasing the shareholding of the Company in 
Swire Properties Limited from 67.5671% to 72.4953% of the enlarged 
issued ordinary share capital. Because of the conversion, no dividends 
on the preference shares are receivable for the financial year beginning 
1st January 19S2 but the new ordinary shares will participate from 
that date in the profits of Swire Properties Limited and, in all other 
respects, will rank pari passu with- the existing ordinary shares of 
that company. . 

Hong Kong 
9th June 19S2 


The Directors of Swire Properties Limited announce that Swire 
Pacific Limited, the holder of all the 170,500,009 9|% convertible 
cumulative redeemable preference shares 1985/87 of HK$1'.00 each 
in issue, has today given notice to exercise its right to convert those 
preference shares on 30th June 1982 into fully paid ordinary shares. 


Under this arrangement, the Company will issue 93,000,000 
ordinary shares, -credited as fully paid, to Swire Pacific Limited The 
Company is informed that this will result in an increase in the share- 
holding of Swire Pacific Limited in the Company from 67.5671% to 
/ 2.4953% of the enlarged issued ordinary share . capital - of 
HR$6 12,036,542. No dividends are now payable on . the preference 
shares in respect of 1982; however, the new ordinary shares will rank 
pari passu in all respects, with the ordinary shares - of the Company in 
issue at 30th June 1982 and will participate in distributions relating 

. to the financial year beginning 1st January 1982. : . 

Hong Kong ’ *•••*■ 


OTTOMAN BANK 


By order of the Board 
JOHN SWIRE & SONS (H.K.1 LIMITED 

Secretaries 


9th June 1982 



• ' - ' By order of the Board 
JOHN SWTRE &’SONS (HJC) LIMITED 

Secretaries 


The Swire Group 



Notice is hereby given that a DIVIDEND 
at the rate of £4.00 per Share, voted at T 
: - the General Meeting of Shareholders/, 
held on 9th June 1982/will be PAYABLE - 
../ on and after 18th Jome 1982; in^Iiondon/ 
at 23 Fenchurch Street, E.C 3. > Thi; 
Coupon to be presented is No: 109: TheJj 
holders of Founders*. Shares will receiver 
^ an amount of £450.10 per whole share/ 
payable on the same date and at the saMeF. 
place, against presentation of Coupon Wo;/ 

: . ' 52 -. Coupons must be listed on /tennis;/ 
“ Which can be obtained.pn application, and'/ 
. left five .clear, days for’ examination;; 
.• before payment -■ " - 








. Financial Times Thursday June 10 1982 


y x 


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lce Broth# 

» fight io; 

C'rjimt chaii 

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SKS, INTL. COMPANIES & FINANCE 

Nigeria tests its standing 


NIGERIA 35' set; to- approach 
the international capital market 
in the coming fer loans 

totalling some SZbn, to finance 
the construction of its newstan- 
dard gauge railway. 

The loans, being put together 
in six53Q0m-$400m financial 
packages for the contractors 
which will build the different 
sectors of the 300-mlle railway, 
will be a key test of. Nigeria's 
status in the market. . 

They are being syndicated at 
a . time when * international 
bankers are .expressing - ex- 
treme caution about , the health 
of the Nigerian economy*. be- 
cause of uncertainty over the 
state of the international oil 
market, on which the country 
depends for some 90 per cent 
of export earnings, and 80 per 
eent of government revenue. 

However, the borrowing seems 
certain to enjoy top priority 
from the Federal Government, 
which has decided to push 
ahead with the railway project 
—an essential part of the de- 
velopment of a Nigerian steel 
industry, linking the Ajaokuta 
steel plant to the coast— in spite 
of being forced to introduce an 
economic austerity programme 
because of the slump in oil ex- 
ports. 

Nigerian borrowing has been 
virtually at a standstill in re- 
cent months, as the Govern- 
ment has sought to come to 
terms with its straitened cir- 
cumstances, and stem a drama- 
tic decline in its foreign 
exchange reserves. Those re- 
serves have dropped from 
$9.4bn in. May 1981 to little 
more thaii $1.4bn at 'the end of 
March this year, as a result of 
a trade deficit running at up 
to $lbn a month. 

Rankers involved in the forth- 
coming loans believe that the 
dramatic action of ’ President 
Sbehu Shagari, who announced . 
sweeping import restrictions in 
April, end a pause in new 
capital projects, should help to 
restore confidence. The package 
is intended to reduce the coun- 
try’s soaring Import bill — run- 
ning at an average N1.2bn 
($1.8bn) a month for the past 
year — by a third. 

They also point to the slow 
but steady recovery in Nigerian 
oil production' to a level of 
1.3m barrels a day last month, 
compared with a low point of 
less than 700.000 b/d in late 
March and early April, lit the - 
meantime, Nigeria’s determina- 
tion to mflin fMin its' Opeo-fixed 
oil price of $35.50. for Boxrny 
Light crude, when comparable 
North Sea oil was selling for 
$31, appears to have paid off 
with a steady increase in spot 
market prices. 

. The problem about making 


any forecast of Nigeria's recep- 
tion "in the capital market is - 
that the country conforms to 
few of the normally accepted 
rules of thumb for credit-rating. 

- Its budgeting is conservative, 
its debt-service ratio relatively.' 
modest, and its economy under- 
pinned by the. long-term cer- 
tainty of oil. revenues; whatever 
the short-term problems. "Yet 
bankers - are unanimous that 
Nigerian paper is chili cult to 
market 

On the other hand it has 
■ enjoyed a constant margin of 
i- per cent over the London 
interbank offered rate (Libor) 
.in -the past two years, while 
comparable oil exporters like 
Mexico have faced a sharp In- 
crease in the cost of. their - 
finance. 

The answer to the first appar- 
ent contradiction is that it is not 


incurred on top of $5bn debt 
outstanding at the'end of 1980. 

As a result of that increase, 
and the ' decline in oil export 
earnings, the country's debt- 
service ratio no kmgeqr appears 
quite so modest: while it stood 
at only 6.5 per cent in 1981, oil 
production at a rate of l.3m b/d 
would imply an increase to 
more than 10 per cent this year; 
only taking into account those 
debts incurred up to the end 
of 1980. 

As for the } per cent margin 
over Libor, like so many 
things in Nigeria, it is not as 
it.seems.All Nigerian borrowers 
also hare to pay a “manage- 
ment fee” — also known, 
variously, as 3 contractor’s fee 
or subvention fee — in order to 
obtain foreign loans. 

Given an adamant refusal by 


NIGERIA 


mHOan b«n«li par d»» 


FOREIGN 
EXCHANGE " 
RESERVES - 

Bounai lMP/c*etrvl ‘ 
Bank of Maart* 


■ OIL 

PRODUCTION 


any fundamental economic 
weakness which worries the 
hanking community, but rather 
the administrative . chaos which 
plagues government in Nigeria. 

'■“Late payments Mve been 
more.' the norm than the excep- 
tion in the- past six months,” 
according to one UJ5. banker. 
“But the. problem is bureau- 
cracy."- and * administrative 
hassles, rather than actual cash 
shortage. 

“Nigeria is unique in con- 
sistently - mis sing 'interest pay- 
ments, but always paying in the 
end,, indutijng adl the penalty 
interest”. 

Bankers are also worried by 
the plethora of Nigerian public 
borrowers in the market most 
of them the 19 state govern- 
ments, whose administration 
and budgeting is notably worse 
than that of the Federal 
Government • 

- Total Nigerian, debt increased 
sharply last year, with syndi- 
cated loans totalling some $3bn 


t he Nigerian Government to pay 
a higher margin over Libor, 
banks have simply increased 
that management fee, payable 
by the borrowing contractor, as 
the assessed risk has increased. 

Two years ago, the standard 
management fee stood at 2 per 
cent, and today, the minimum 
is ptd at 3$ per cent, substan- 
tially increasing the effective 
cost of finance. - 
- would be much cheaper 
for ull concerned for Nigeria 
to pay llr or 14 per cent over 
Libor, but the management fee 
is now very .much part and 
parcel of doing business in 
Nigeria,” says one London 
banker. 

Such considerations apart. 
Nigeria still has to persuade 
potential lenders that it has a 
coherent strategy both- in 
tackling its . balance of pay- 
ments problem and -in its 
longer-term development plan, 
of which the standard gauge 
railway is one important part. , 


In addition ..to President 
Shagari's • import restrictions, 
Nigeria has drawn some 5740m 
from its holdings at the Inter- 
national Monetary Fund— its 
SDR holdings and reserve 
tranche, including the oil 
• facility and supplementary 
financing, facility. It is also 
- reported to have agreed on a 
six-month, interest-free loan of 
$lbn from Saudi Arabia, 
although no official confirma- 
tion has been, or is likely to 
be, forthcoming. . 

Top Nigerian officials are 
determined hot to approach 
. the markets -for any new jumbo 
loans, or direct balance of pay- 
ments financing. However, 
. their strategy of using only pro- 
ject finance contains a large 
element of hidden balance of 
payments finance: the railway 
loans, for example, will be 
divided into one portion backed 
by export credit guarantees, for 
the export content of the con- 
tracts, and one portion of 
.straight Euroloans to finance 
the naira cost, the latter being 
effectively balance of payments 
finance. 

The six contracts involve sax 
different companies or consor- 
tia, and sax different lead 
managers: Credit Lyonnais for 
Dumez, and Banque Nathmale 
de Paris for Dra gages et 
Travaux Publics, both 1 with 
French export . credits; Morgan 
Grenfell for a CMnes e-Swiss 
consortium, with British ECGD 
backing; Lloyds Bank Inter- 
national for the Stirlmg-Im- 
presit consortium, with guaran- 
tees from ECGD and Italy’s 
SACE; Lazard Brothers for 
Pantizanski of Yugoslavia; and 
Citicorp for Faranapanema of 
BrariL 

Bankers admit that the Euro- 
loan portions of the railway 
packages will be the most diffi- 
cult to place, especially as six 
different lead banks wffl be 
attempting to raise money for 
Nigeria simultaneously. One 
suggestion is that the six 
packages should in turn be co- 
ordinated by one hank, as over- 
all lead manager. 

Another possibility is 'that 
both Yugoslav and Brazilian 
packages will include an ele- 
ment of oil barter with Nigeria, 
thereby reducing the overall, 
financing requirement. 

Some co-ordination is clearly 
needed, as well as confirmation 
of the top priority the railway 
enjoys, for- the banks know 
there is little point in complet- 
ing five of the Six. financing 
packages, and leaving one 
.sector of the railway out in the 
cold. 


All these securities having been sold,this announcement appears as a matter of record only 

GMAC Overseas Finance Corporation N.V 

U.S. $125,000,000 
15% Notes due May 17,1989 

Guaranteed by- 

General Motors Acceptance Corporation 

Chemical Bank International Group 


Algemene Bank Nederland N.Y 
Bank Brussel Lambert N.V 
Credit Lyonnais 

Kj^tetbank International Group 

Union Bank of Switzerland (Securities) Limited 

Wbod Gundy Limited 


Banca del Gottardo 
Banque Generate du Luxembourg SJ\. 
Kleinwort, Benson Limited 
Societe Generate 

Westdeutsche Landesbank Girozentrale 
Yamaichi International (Europe) Limited 


American Express Bank International 
Group ' 

Amhold andS.Bldchroeder.lnc. 
Bache Halsey Stuart Shields 
Incorporated 

Julius Baer International Limited 
Banca Commerdale Italians 
Banco di Santo Spirito (Luxembourg] 
Bankof America! ntemational Limited 
Bank furGemeinwirtschaft 
Aktiengeseilschaft 
Ba nk G utzwil I er, Ku rz, B ungener 
(Overseas) Limited 
Bank Heusser & Cie AG 
Bank Leu International Ltd. 

Bank Maes & Hope NV > 

Bank of Tokyo International Limited 
Bankhaus Gebruder Bethman 
Banque Lou is- Dreyfus 
Banque Nationals de Paris 
Banque NMB-Interunion • 

Banque Populaire Suisse SA, 
Luxembourg 

Banque Priv&edeGestion Financiers 


Quentin Peel 


BanquedeFUnion Europeenne 
Banque Worms 
Baring Brothers &Dx, Limited 
Ba yen sc he Hypotheken- und 
Wechsei-Bank Aktiengeseilschaft 
BayerischeVereinsbank 
Aktiengeseilschaft 
Bear.Steams&Co. 

Bergen BankA/S 
Berliner Bank Aktiengeseilschaft 
Berliner Ha ndels- und Frankfurter Bank 
Blyth Eastman Paine Webber 
International Limited 
Breisach Pinschof Schoeller 
Bankkommanditgeseflschaft 
B.S.I. U nderwriters Limited 
Cazenove&Co. 

Chase Manhattan Limited 
Christiania Bankog Kreditkasse 
Cl BC Limited 
Compagnie de Banque et 
d'i nvestissements, C.B.1 . 


County BankUmrted 
Credit Chhnique 
CreditCoramercial de France 
CredftlndustrielcfAlsaceQtdB 
Lorraine- 

Credit Industrie! et Commercial . 
Credit duNord 
Credhanstatt-Bankverem 
C red rto Italia no 

Dai-lchi Kangyo International Limited 
Daiwa Bank (Capital Management) Ltd. 
Daiwa Europe Limited 
Richard Daus &Co. Bankiers 
vormals Hans W Peterson 
Den norske Creditbank 
Deutsche Girozentrale 

- Deutsche Kommunalbenk- 
DGBank 

Deutsche G anossenschaftsba nk 
Dominion Securities Ames Limited 
Dresdner BankAktiengesellschaft 
Drexei Burnham Lambertlncorporated 
Euromobiliare ‘ - 

European Banking Company Limited 
Rrst Chicago Limited 
Fuji International Finance Limited 
Gefina International Ltd. 
GenossenschaftlicheZentralbankAG 
Vienna 

Girozentrale und Bank der 
Osterreichischen Sparkassen 
Aktiengeseilschaft 
Goldman Sachs International Corp. 
G5ta banken 

GroupementPriv6GenevoisSA 
Hambros Bank Limited 
Handeisba nk N.W. (Overseas) Limited 
Hessische Landesbank 

- Girozentrale - 

Hill Samuel & Co. Limited 
1BJ International Limited 
Kansallis-Osake-Pankki 
Kidder, Peabody International Limited 
LandesbankRheinland-Pfalz 
— Girozentrale - 
Lazard Brothers &Co., Ltd. 


Lehman Brothers Kuhn Loeb 
International, Inc. 

Lloyds Bank international Limited 
LTCB International Limited 
McLeod Young Weir International 
Limited 

Manufacturers Hanover Limited 
B . M etzl er seel . Soh n & Co. 

Mitsubishi international Finance 
Limited 

Sam uel Montagu & Co. Limited 
Morgan Grenfell & Co. Limited 
Morgan Stanley I ntemational 
The Nikko Securities Co., (Europe) Ltd. 
Nippon Credit International (HK) Ltd. 
Nomura International Limited 
Norddeutsche Landesbank 
Girozentrale 
Nordic Bank PLC 
Orion Royal Bank Limited 

Rabobank Ned e Hand 

LF. Rothschild, Unterberg,Towbin 
Salomon Brothers International 
Sanwa Bank (Underwriters) Limited 
Scandinavian Bank Limited 
J. Henry SchroderWagg &Co. Limited 
Singapore Nomura Merchant Banking 
Limited 

Skandinaviska Enskilda Banken 
Smith Barney, Harris Upham & Co. 
Incorporated 

Societe Generate de Banque SA. 

Spa rba nkemas Bank 
Sparekassen SDS 

Standard Chartered Merchant Bank 
limited 

Sumitomo Fina nee I ntemational 
Takugin International (Asia) Limited 
Verband Schweizerischer 
Kantonal banken 
Vereins- und Westbank 
Aktiengeseilschaft 
J.Vontobel&Co. 
M.M.Warburg-Brinckmann, 
Wirtz&Co. 

S.G. Warburg & Co. Ltd. 

Williams &Giyn's Bankplc 


May. 1982 



Tins Advertisement appears as a. matte of record only. 
IScsePebeiitara have Ixm sold onteiti»Qmada and fte United State America. 


NewIsSOft 


9ft June, 1982 


Can. £100,000,000 

Bell Canada 


16% Debentures, Series DI* Doe 1989 


XMimBgnkofSW!fzei3hnifl^5ecnrifies)Xjpnfe^ 


A^€snaieBaiikNedexlai>d]>LY. 
X tomimo nSeamfi£S.Anies Xjaited 
Hamhros BankT jinited 
Spd&eG&ieraledeBaiiqfKSJbi 


Credit Lyonnais 


Salomon Brothers International 
Wood Gundy limited 


.Triur? Twtonqftnwal TSnfifri Bte^efAiomcnlnfma&Qnal limited 

BankGmb^SmtzerM(CX)Iin2Ed Bank Txalfatarofiniril lag. Baa^Bcax^IflmlieitSAi 
EaiwiiBPomflaireSnisseS^Izixeirilwing . ■ Baring Bm&crs & Co, limited 



»to ItanqaB et ffliivesfls seniaifSL CRT , fiSttlmiLll Tlft iofis TMfrd r CMfBairklaiM 
Pt fingmcnMl .. Dii?«EiM®eI4Dltei . ; ■.. Porisdte Wanlr AlrtimgeseBscfaaft 

]ppczd Bnndiaia Xjixobext 3ncai$ocai£& EnunpHEut 

Twfpmafinwwl Tiarift-d • gfewfralhmfc AG-IBetma. 


T m-mjra-a l wl CkweaedtdesBangiBttslTi^ Gctctws 

Hiaddaterik ICT.fflwaMli) HmM y >nallta fls3kEJRMiHr? Infematimifll limited 

SktefR^Bmnliprittd ' IelBtaa3Brij6wsKnhR3j)d> Xntema&joal, Inc: 

T. ywrihT nfP reg tfa wI A Ot. - 

iKafl«sJtiBank(pia^>SA. Ne^Thransoalimitfid 


• Paata , 39i*arfs»S«wfficsof 


JLVontobdAOft. 



This advertisement compRes'imth the requirements of the Council of the SlockExchange. 
It does not constitute an vaaialion to subscribe for or purchase any securities. 


US.$ 4 Q, 000,000 

■ Banca Serfin, SLA. 

(Apricate banking mstitiitimincorporated tnUihnuled. liability in the UmledMadcan States) 

Subordinated Floating Rate SenalNotes Due 1985-1989 


TkefoUowing have agreed to suhscribefor the Notes: 

Morgan Gdaranty Ltd 

Banco de Bilbao S.A. Banco de Bogota, SjV. P.4n.a\la 

Bank of America International Ijmeeed • Bankers Trust International Limited 

Banque Nationale de Paris Barclays Bank Group 

Chemical Bank International Group Continental Illinois Limited 

Credit Lyonnais Manufacturers Hanover Ijmiied 

Samuel Montagus Co. Limited 

TheNotes, issued at 98 per cent in denominations o fU-S^KLQOQ, hara been admitted to the Official List by the Council o£ ihe Slock Exchange 
subject only to the issue of die temporary Global Note. 

Interest is payable seml-ann ually in arrears in December and June, the first payment to he made in D ecemberl982. 

Fuflparticnlais of the Notes am aHnnObhl^ in thtTCirtri. Statistical Smnw- antl Twny hfthhtainpd during ncnal bnainess ho»ir«! and inrln dinp 1 

June 23, 1982 Ixook- 


CazenoveACo, 

12 To ken B onse Yard 
LondonEC2R7AN 


Morgan Guaranty Ltd 
30 Throgmorton Street 

London EC2N2NT 


June 10,1982 


Bank of Tokyo (Curasao) Holding NY 

us $ 100 / 100 , 000 ' 

Guaranteed Floating Rate Notes due 1991 


Payment of the principal of. and interest on, the Notes 
- is unconditionally and irrevocably guaranteed by 

TheBankofTokyo,LtiL 

pralwflftf PnftlmTctyaGflifaO . 

In accordance with the provisions of the Agency Agreement between 
Bank of Tokyo (Curacao) Holding N.V., The Bank of Tokyo, Lt«L, 
and Citibank. NA* dated December 8. J98I, notice is hereby given 
that the Rate of Interecc has been fixed at 15i%' pa and that the 
interest, payable on the relevant Interest Payment Date, December 
. 10, 1982. against Coupon No. 2 will be USS387A& 


fane 10, 1962 

By; Citibank. N.A.. London, Agent Bank 


cmBAN<o 


U.S^10<y»0,000 Guaranteed Floating Rate Notes due 1994 

Citicorp Overseas Finance 
Corporation NeV* 

(Incorporated with limited liability In the Netherlands Antilles ) 
Unconditionally guaranteed by 

cmcoRPO 

In accordance with the terms and conditions of the above-mentioned 
Notes and Agency Agreement dated as of March 5, 1979, between 
Citicorp Overseas ^ Finance Corporation N.Y.- and Citibank, NA., 
7«/*e/ * hereb * 2‘ ven th *t the Rate of Interest has been fixed at 
i5«»3o' per annum and that the interest payable on the relevant 
interest Payment Date, September 10. 1982 against Coupon No. 14 
in respect of USJS 1,000 nominal of the Notes will be U^S.$39„13< 


fane 10, 1982 . 

By: Citibank, N.A., London, Agent Bank 


CITIBANK 








32 


TECHNOLOGY 


Financial Times Thursday June. .10, 19S2L 

THERMTCELl 

BOOFUGHTINSUWnON ! 


EDITED BY ALAN CANE 


Italy could go private with illegal data networks 


BY JAMES BUXTON, IN ROME 


COULD ITALY soon have 
illegal private telecommunica- 
tions networks, providing the 
most advanced data transmis- 
sion services in defiance of a 
state monopoly? 

Some experts believe, with a 
mixture of alarm and excite- 
ment. that it could, if the gov- 
ernment doesn't soon work out 
a more rational structure for 
Italy's telecommunications set- 
up. 

They point to Italian televi- 
sion, where the state radio and 
TV organisation’s monopoly of 
national — as opposed to local. 
— broadcasting has been broken 
by half a dozen private national 
networks. 

The private networks unite 
dozens of legitimate local 
stations all over thte country 
which “ just happen ” to broad- 
cast the same programmes 
simultaneously. In telecom- 
munications. it is argued, pri- 
vate operators could move in 
illegally to make up for the 
deficiencies in what the state 
provides. 

Italian telecommunications 
are at a turning point. A com- 
prehensive plan for improving 
the existing network and intro- 
ducing the vast range of data 
t ransmi sison services made pos- 


sible by the revolution in tele- 
matics — the blend of telecom- 
munications and electronics — 
has recently been approved by 
the Government, entailing the 
spending of L22bn ($17bn) by 
1990. 

In most developed countries, 
telecommunications are the 
responsibility of one major 
utility (such as British Tele- 
com) responsible to a single 
ministry. 

In Italy, control is divided 
between three ministries and 
several utilities and companies. 
The basic network is the 
responsibility of the Ministry of 
Posts: its own utility, ASST, 
handles many trunk and over- 
seas calls and is in charge of 
telex services. 

But the main internal tele- 
phone services, including local 
exchanges, and all relations 
with subscribers, are the 
responsibility of SIP, which is 
a state-controlled company 
under the Ministry of State 
shareholdings. Two other state 
companies handle overseas calls 
by cable and those by satellite. 
However, tariffs for the whole 
system are the responsibility of' 
a third ministry, the Ministry of 
Industry. 


The SIP is now recovering 
fast after a long period : of 
dentine, caused mainly by the 
Government's refusal to allow 
it realistic tariff increases after 
the 1974 oil crisis. It lost about 
Ll,000bn over; the 1979-80 
period, but last year made 
respectable profits of L255bn, 
thanks to more realistic tariffs, 
recapitalisation and a big cut in 
the rent it must pay- for trunk 
calls handled by ASST. . 


and to become a major force 
in the expected big growth 
area of telecommunications, the 
□ew data transmission services 
winch its customers are request- 
ing. The block is caused by 
ASST. 


Bottlenecks 


It is now planning to make 
up for yearn of technical stagna- 
tion. It aims to cut the average 
waiting time for a telephone 
from 10 months to six or seven, 
and intends to. instal a million 
new lines a year by 1986, so 
that by the end of the decade 
Italy should have 23m sub- 
scribers against 14m today. It. 
is planning progressively to 
modernise the switching system 
with all electronic exchanges. 

But in two important ways 
its path is partially blocked: it 
wants to remove the bottle- 
necks on the congested main 
trunk services (especially the 
tiok between Rome and Milan) 


ASST’s efficiency in providing 
services can partly be judged 
by the fact that it can take 
three to four years to obtain 
a telex connection in Italy. 
Being part of a Ministry it is 
tied to Government wage scales: 
an engineer with ASST may get 
half what he would be paid 
by SIP. According ' to one 
observer: “You simply can’t, 
run a 20th century telecom- 
munications system with a 
bureaucracy dating back to the 
18th century.” 

The division of responsibili- 
ties between ASST and SIP has 
long been recognised in Govern- 
ment as a bad thing. But inter- 
Min istraal rivalries In Italy are 
ferocious, and both the main. 
Ministries involved are sources 
of ixnmence patronage, one in 
the hands of the Christian 
Democrats, the other • the 
Socialists. After Herculean 
labours by committees the 
inter-Sffinisterial planning body 
recently resolved that the 


relationship between ASST and 
SIP be revised and that the 
way be cleared to the installa- 
tion, of “data networks' and 
new .telematic services," to be 
entrusted' to SIP. 

.But, the resolution went on: 
“ Hie primary data network, in- 
clqding area, switching centres, 
will remain the responsibility 
of the posts, to which will riso 
be entrusted telepost, telefax, 
teletxte, telex, and similar 
srvices of electronic mail." It 
was, in -the words of a senior 
man. at SEP: “The most dis- 
appointing, decision I haw ever 
seen in my life-" 

Even if ASST were highly 
efficient, say the critics, it 
would make no economic or 
technical sense to divide the 
management of the system 
between primary and secondary 
networks. In one line of the 
statement SIP is -given responsi- 
bility for " new telematic 
services.” in another it is 
specifically excluded from most 
known such services. 


Subscribers 


The critics say the decision 
will drastically slow down the 
installation of a national data 


transutissKm network, and hold 
up newsservices. SIP will go 
ahead ingtnMwp transmis- 
sion networks for 350 major 
users— it ^already, provides less 
subscribers— but ibis is not the 
same as a national network to 
which anyone can have access 
to: existing private system sub- 
scribers can only communicate 
with each other by means of 
tapes and discs. 

If the state, is unable to pro- 
vide the new services efficiently 
the private sector is likely to 
move in. In defiance of the 
official monopoly. , An enterpris- 
ing outsider might use some of 
the .existing private networks 
( which . effectively cover much 
of .the country) to form the 
basis of a privately-run national 
network, offering services to 
bridge* the gaps between one 
local area network and another 
with private connections to 
commercial satellites. 

It might- be illegal but, as 
one observer said: “The first 
private Tadio station was tile- 
gal.” Once, the state monopoly 
was breached it might crumble.” 

Whether tins should be good 
or bad depends on your point 
of view. In the view of Sip and 


in government, generally, it 
would be an inefficient and 
wasteful way of attaining the 
national network which SIP 
would be well placed to -supply, 
if it- only had thte chance. 

But the private TVinetworks 
supply , a compelling counter- 
argument. Their programmes 
are usually superior to those of 
the state authority, the tai, 
which, however, still dominates 
in costly news services. Their 
legality is still being challenged 
in the courts, but their popu- 
larity and growing political 
entrenchement make it virtually 
inconceivable that they -would 
be closed down. 



Desirable 


It may -not comb to that in 
tdcommuxocations. Mare poli- 
ticians - are . . realising that " a 
single telecomuni cations entity 
under the aegis of a single 
ministry is highly desirable, and 
the recent judgment of Solo: 
man could yet be revised. But 
time is raoraog short according 
to one highly placed official: 
“ The situation as already in- 
tolerable. If the impasse is not 
overcome m the next 'five yeas 
it will become explosive.” 


Texas suitcase for voice synthesisers Improved technique for residual 


BY GEOFFREY CHARLISH 


TEXAS INSTRUMENTS, which 
has been playing a leading part 
in bringing electronic voice 
synthesis to the market, has 
developed a portable suitcase- 
sized device -which can take 
about 400 words of speech, digi- 
tise <them and load them into 
memory chips for use in com- 
mercial and industrial OEM 
products. 

Up to now, the company has 
been offering standard speech 
read-only memories (ROMs) 
from a library of pre-encoded 
words and phrases. 

Although it has been able to 
encode and store speech to meet 
individual customer's require- 
ments, this could only be done 
on a mainframe in the U.S., 
taking up to 10 or 12 weeks to 
supply a ROM or electrically 
programmable ROM (EPROM) 
for the customer’s use. 

Now the company can use the 
new product at its Bedford 
location or alternatively the 
customer can buy it for £15,800. 
allowing him to “build up ex- 
perience and to generate bis 
own word library with com- 
plete confidentiality. 

Texas is calling the unit 
“Portable Speech Lab.” It is a 
self-contained system which 
analyses data by the linear pre- 
dictive coding (LPC) method 
for Immediate production of 
synthetic speech. 

Rather than directly trans- 


lating the rising and falling 
tones of human speech into digi- 
tal codes, LPC encodes only the 
essential energy and pitch 
information and then is able to 
“predict” how the entire word 
or phrase should be spoken. 

One outcome is a lower data 
Tate requirement, so that only 
about 1 per cent of the memory 
space is needed compared with 
direct encoding and, claims 
Texas. 40 per cent less than any 
comparable encoding tech- 
nique. Fewer components are 
called for. resulting in lower 
cost and less bulk. 


Coefficients 

Complete words and phrases 
can be stored in this way, or 
the equipment can he used to 
string together individual 
sounds to form words. Data 
rates in the latter case are even 
lower although, because sounds 
have been joined together the 
speech can sound “choppier” 
and more machine-like. 

The encoded data generated 
by the machine can. if required, 
be loaded to a mainframe com- 
puter via an RS 232C link. Or. 
fit can be immediately listened 
to. Alternatively, it can be 
edited first with the aid of a 
terminal which displays the 
speech data as columns of coded 
digits representing energy, 
pitch and filter coefficients. 

Speech is produced by the 



catalyst HDPE measurement 


SCIENTISTS at Phillips Petro- 
leum Chemicals in Belgium 
have improved the technique 
for measuring by infra-red spec- 
trometry the residual catalyst 
in commercial high-density 
polyethylene (HDPE). 

Standard analytical procedure 
requires more than two hours 
to bum a 100-gram sample of 
polymer to a measurable quan- 
tity of ash. Phillips claims that 
its infra-red method is faster 
and more accurate in serving as 
a guide for controlling the par- 
ticle form polymerisation pro- 
cess in. a commercial reactor. 

Accurate analysis of catalyst 
residue is important in deter- 


mining catalyst, productivity, 
commonly in the range of 
1,000 to 10.000 grams of poly- 
mer per gram of catalyst 
• The infra-red. method in- 
volves the preparation of a 
polymer film on a; Buehler 
mould by placing about a half 


UNIQUE OPPORTUNITY 
Due to customer default, several flew 
DIcmI tSncrattog Sets, suitable tor 
Tropical operation are^now available 
tram stock and at very compet i t i ve 
prices: 

Basic features: 2.100 kW to 2.310 kW 

1.000 rpm 

50 Hz 

for former information please con ta ct : 
P. RlXttOn or ©. Bool, 
CocKerlll Sarabre S-A. 

Mica Sera I ns Beiaiuro 
TO: UZ41) 36.CO.OO ext 1531 or 1112 
Tales: 4124 ckteam b 


J.V.. : X 


Speech put into the Texas analysis system can be processed, 
digitised and re-synthesised from the loudspeaker in less than 
three seconds 


Texas VSP. voice synthesis pro- 
cessor, which takes the coded 
speech from the memory chip 
and processes It In what 
amounts to an electronic model 
of the human vocal tract 
Just as speech is created by 
air impulses passing through 
tiie tract, the synthetic speech 
is generated by processing the 
electronic impulses through a 
rapidly changing electronic 
filter. The result, claims Texas, 


is natural sounding synthetic 
speech. 

The synthesis processor 
(VSP) can itself be interfaced 
with four, eight or 16 bit micro- 
processors which, together with 
the memory chip and loud- 
speaker will form a complete 
speech synthesis system of the 
kind that will soon be appear- 
ing «in appliances, office equip- 
ment learning aids • and 
security systems. 


‘--s. . 

J- ‘ ?+* 

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: •: .A < - -r'Z.t-T: 


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t T'.-.v \.c. ** '•*: '■£ '■■‘■z 

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- -p 1 ' -T'-*- \ J& 

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/•» t ,--;.VYvV\> “ : ' ' -K „ ;: T 


V Pbc.‘c C£RN. : Courtesy cr Europecii Grcanizcricn fo'- Nuclear Research - Geneva. 


I ilium i i win i ii mmi ii i mi i 

MONITOR EVERY SECOND, A SCIENTIFIC 
TEAM SELECTED MOTOROLA. 



■OIDBOU MPU 68000 16/32 Bit HORTniAN A ■CUMNEBOL 


AU30ST A COMPUTES DIITfflJF. 


Justoufsde Geneva; a feam of s den- 
tists from CERN (European Oi^ancar* 
ticai for Nuclear Research) is studying 
the fo rces present in nature, with a 
view to identifying their origins. This 
study stems from the proposal that* 
th er e might be a common origin be- 
tween etedro-fnagnefic and .weak 
forces (Glashow, Weinberg, Sotam, 
1979 Nobel Prize for Physics). This 
requires identifying a new^ very heavy 
particle. To make fins research pas- 
sibJe, they have built a storage ring for 
high energy protons and anfipro- 
ions which collide 50.000 fa nes 
a second. Each collision geo- 
erafes some fifty partides. Which 
meant, the scientists needed a 
rrkropnacessor of 

selecting, out of ert least- 
2300.000 particles every 
second, the right ones for further 
analysis (the above photo shows on 



Ihe computer video-screen particles 
generated by collisions). 

A microprocessor, in short, with the 
muscle of a compeer at the price of 
a microprocessor. So they selected 
Motorola: the manufacturer that 
leads file world In semiconductor 
technology, w3h a product range to 
nKztdhJtadaneiwoikof sales 


offices and dist rib ut ors that con 
guarantee: local! assistance any- 
where in Europe* And ihey'found 
their -answer. 

A microprocessor from the 68000 
16/32 bit MPU Family, many -fanes 
faster then a conventional 8-bitmCTO- 
processor, simple in concept, refiabhv 
but enormously powerful 
And in Spring 1982, tbeywere happily 
condoctingfiTerftstexperirnerts. 
Just one example to show how 
Motorola Semiconductors stands 
xeodycird.equTp^^tobeaknowl- 
edgeabfeelednww: partner to scien- 
tific research. And, of course,, to 
industry at large. 


BASE LENDING RATES 


A^_N. Bank 12*% 

Allied Irish Bank 121% 

American Express Bk. 13 % 

Amro Bank 1 2f% 

Henry Ansbacher 12 

Arbuthnot Latham ... 13 % 
Associates Cap. Corp- 13 % 

Banco de Bilbao 121% 

BCCI 121% 

Bank Hapnalim BM ... 13 % 

Bank of Ireland 121% 

Bank Leumi (UK) pic 12j% 

Bank Of Cyprus 12$ % 

Bank Street Sec. Ltd. 14 % 

Bank of N.S.W 13 % 

Banque Beige Ltd. ... 13 % 
Banque du Rhone et de 

la Tamise SA. 13 % 

Barclays Bank 12 J% 

Beneficial Trust Ltd. ... 14 % 
Bremar Holdings Ltd. 13J% 
Brit. Bank of Mad. East 12 

I Brown Shipley 13 % 

Canada Perm’t Trust... 131% 
Castle Court Trust Ltd. 13 % 
Cavendish G’ty T'st Ltd. 14 % 

Cayzer Ltd 13 % 

Cedar Holdings 13 % 

I Charterhouse Japbet... 13 % 

Cboulartons 13 % 

Citibank Savings |12|% 

Clydesdale Bank 12f% 

C. E. Coates 13^% 

Comm Bk of Near East 13 % 
Consolidated Credits... 13 % 

Co-operative Bank *12J% 

Corinthian Secs. 121% 

The Cyprus Popular Bk. 124% 

Duncan Lawrie 121% 

Eagil Trust 12|% 

E.T. Trust 13 % 

Exeter Trust Ltd 13f% 

First Nat. Fin. Corp.... 154% 
First Nat. Secs. Ltd.... 154% 


' Robert Fraser 14 % 

~Grindlays Bank ...4124% 

■ Guinness Mahon .....: 124% 

■ Hambros Bank 124% 

-Heritable & Gen. Trust 124% 

■ Hill Samuel §124% 

C. Hoare & Co tl24% 

Hongkong & Shanghai 124% 
Kingsnorth Trust Ltd. 14 % 
Knowsley & Co. Ltd.... 13 % 

Lloyds Bank I 

MaJlinhal! Limited ... 1^ 
Edward Manson & Co. 14 
Midland Bank ...... ...... 124 

■ Samuel Montagu 124% 

■ Morgan Grenfell 124% 

National Westminster 12|% 
Norwich General Trust 12|% 

P. S. Refson & Co 13 % 

Roxburghe Guarantee 134% 

E, S. Schwab 13 ~ 

Slavenburgs Bank ... 124 . 
Standard Chartered ...||12f% 

Trade Dev. Bank 124% 

Trustee Savings Bank 124% 

• TCB Ltd , 13 % 

United Bank of Kuwait 12|% 
Whiteaway Laidlaw ... 13 % 

Williams & Glyn’s , 124% 

Wintrust Secs. Ltd- ... 124% 
Yorkshire Bank X3|% 

■ Members of the Accepting Houses 
Committee. 

• 7-day deposits 9-514. 1 -month 
9.75%. Short term £8.000/12 
month 12.1%. 


gram of the sample between 
aluminium foil discs on a 1mm 
spacer and heating- to 16ff deg 

c. . . •; 

.. After pressing, at 415 bars 
and cooling to room tempera- 
ture, the sample, thickness Is 
measured to . the nearest 
0.01 mm and absorption spectra 
of the polyethylene films .con- 
taining silica ; catalyst support 
taken by ari * ordinary c omm er- 
'cial spectrometer. 


Filter 

noise 

reduction 


Seminar 


“TECHNIQUES for Unmanned 
Madiiniiig , ’-is the title of a cog 
day seminar oigahised by the 
Machine Tool Industry.' Rsearcfa. 
Association to-be held at-: the 
Association's headquarters in 
Macclesfield-, next Thursday 
(June 17) . Pape rs Win be pre- 
sented by MTCRA speakers and 
Others from IT Chur chill, 
UMXST*_ Kongsberg, Renishaw 
and KT1L Brenda Bosxnan at 
MTIRA / (9625 25241) wjQL be 
pleased to hear from you. 


UK ECONOMIC INDICATORS: 


ECONOMIC. ACTIVITY — -Indices of industrial production, roam -i 
fact ur aag output (1975=100);. engineering orders (19 75=100);; 
retail sales vtfiume (1978=100); retail sales value <1978=100); 
registered unemployment . (excluding, school Heavers), and 
unfitted vacancies (000s). A31 seasonally adjusted. • ' 

Big. Retail • Re tail Unem-- . . , 
order 


1981 
lstqtr. 
2ndqtr. 
Srdqtr. 
4th qtr. 
Oct 
Nov 
Dec 

1982 
lstqtr. 
Jan 
Feb 
March 
April 
May 


Indl. 

prod. 


Mfg. 

output 


voL ■ valued ployed 




99.6 

99.0 

1093 

lftl.6 

100.1 

99.1 


88.8 

8&9 

89.8 

89.9 
91^ 
90.0 
88A 


98 

92 

104 

90 


94 

83 


106.6. 

104,7 

105.5 
105.4 
1062 

105.6 
1042 


- 1302 
1342 

139.1 
168.5 

-' 1472 
.158.4 

193.1 


2282 

2,482 

2241 

2,752 

2223 

2,760 

2,769 


m 


96 

m 


m 

108 


99.7 

.992 

99.7 

1002 


89.4 

882 

892 

902 


92 

97 


1062 

.107.0 

106.1 

1062 

10&9 


1412 

1432 

137.6 

1422 

14U 


2,817 

2212 

2218 

2222 

2250 

2272 


112 

112 

113 

111 

116 

107 


OUTPUT — By market sector; consumer goods, investment goods, 
intermediate goods' (materials and fuels); engineering output, 
metal manufacture, textiles, leather and clothing (1975=100);. 
housing starts (000s,' monthly average). 

- • Consumer Invst. Intend. Eng. 
goods goods goods Output 


1981 


Metal 

nmfg. 


Textile Housg. 
etc. starts* 


1st qtr. 

. 93.6- 

883 

1172 

842 

- 75.7 

• 76^ 

1U 

2nd qtr. 

93.1 . 

. 88.7 

m wm 

844$ 

78.7 

75.6 

14J. 

3rd qtr. 

93.5 ; . 

89^ 

118.7 

86^ 

77 3 

mum 

142 

4th qtr. 

93.4 


1213 

86^ 

82.7 

75.6 

1LS 

Oct 

95.0 


124.0 

87.0 


76.0 

132 

Nov 

93.0 


12L0 




139 

Dec 

V AOA 

92.0 

90.0 

m.o 

86.0 


75.0 

13 


1st Qtr.- 

Jan 

Feb 

March 

April 


912 

91.0 

93.0 

92.0 


912 

91.0 

91.0 

922 


119.4 

119.0 

119.0 

120.0 


87.1 

86.0 

87.0 

882 


83.0 

80.0 
842 
852 


73.7 

732 

75.0 

742 


152 

112 

156 

172 

182 


t 7-day deposits on auma of: under 
£10.000 9V*.. H 0,000 ' up to 

£50.000 1QVA. £50,000 and over 
11 %. 

t Call depoaha £1.000 and 
‘9VA. 

II 21-day deposits over £1.000 10^%. 
§ Demand deposits 
1 Mortgage base rate. 


over 


EXTERNAL TRADE— Indices of export and import volume 
(1975=100); visible balance; current balance (£m); oil balance, 
(£m); terms of trade (1075=100); exchange reserves. 

Export Import Visible Current OM Terms Resv. 
volume volume, balance balance balance trade USJbn* 


AteftaofaSaiiPc o ndorioishayefiuee , r _ , 

KabrideinSaotkimJ,Ta()lausebi Fnmce / aridMurodnBiG«mcajy),cswefias 

file EunyeanDeagn Centre mGBnetmYonrlagr^ rfto4»il r»^CTgp dnrlb««k >wr 
AMEX ELECTRONICS Ilti, Hifchin, Herts; «M62) 52083 

AM. lOCK&G&Iidv Oldham, Lanc^p61)^S20431 



JBUHYN D1STR] BUnON^svenoaksjKent, (073ZJ450T44 
MACRO-MAratETnqGLtd^S lough, Beds, (06286) 4422 
THAME Oxai(^5^13145 

THE RADIO RES^TOR Col Udy Bedford, Rcd^ (0234) <0188 


Motorola Lfd, York Kaus^, Brains Way, WanUey, Nx&&qsbx HA9 OfR. 


’■ f K ^ 
i . • • r \ '* 


MOTOROLA 


Less complication 

LESS FRUSTRATION 

Lesse «DESIGN 

O08UILD 


fl 


De^gn & Bugdgfuesyoaatatalsenfcgfrotn o n e 
companywith Pugh quality and reliablecompteiion 
dates-andacooperafive bunch of peopleto work 
wth.Contact John Baxterfor more information. 


Phone 01-977 8755 

The Causeway^ Teddington, Middlesex TWtl OHW. 


1980 
4th qtr. 

1981 
2nd qtr. 
4tbqtr. 
Feb 
March 
April 
Sept 
Oct 
Nov 
Dec 

1982 
Jan 
Feb 
March 
April . 
Ma 


126.4 1U.4 +1265 +2414 +222 1052 2720 


132.4 

1182 

1222 

127.1 

128.8 

132.4 

134.4 
130.6 


126.4 

107.8 

1022 

104.7 

1292 

1222 

1362 

120.6 


+482 +1257 
+334- +767 


+698 

+230 


+ 58 
+396 
—229 
+315 


+271 
+688 
+ 63 
+606 


+291 
+ 74 
+205 
+419 


26.73 
992 ; 2325 
1054 28.43 

2 821 
28.07 
992 23.79 

982 2322 

1004 23.46 

100X 2325 


1182 

124.8 

132.6 


123.4 

120.6 

1252 


— 152 
+154 
+222 


«- 42 
+264 
+331 


+188 

+270 

+214 


10L2 2323 

100A 2347 

10L2 1827 

1846 
1722 


Trade figures for March-August 1981 not evattabte because «f • 
* ' • Civil Service dispute. 


FINANCIAL— Money supply Ml and steriina M3, bank advances . 
m stern ug to the private sector (-three months' g - nwiH - h at wnnwati i 
rate); domestic credit expansion (£m); bididing sooeties 1 net- 
uifiow; HP . new credit: ail seasonally adjusted. Minimum • 
lending rate (end period). 

Bank -V 

. Ml M3 advances .DCS BS HP ’ * 1H3. 1 

19gl ■ % % flm inflow lending - 


Attention All BBC Microcomputer 
and Acorri Atom Users 



Theoflfcirfi . _ 

lidtmanufectuiersGffiieBBCjiili 
Acorn Alom, and the Hoonetsystwn 


-,ti» 


For your free copy of the first issue, 
coming July 1st, write or 'phone now to 


'Acom User' Addison -Wesley Publishers Ltd 
63 Bedford Square London WC1-B-3DZ 
Tel: 01-631-1636 


let qtr. 
2nd qtr. 
Srdqtr. 
4th qtr. 
July 
Aug 
Sept 
I Oct 
..Nov 
Dec - 
1982 
lSt qtr. 
Jan 
Feb. 
March 
April 


6£ 

23.1 

8.1 


8£ 

173 

18J. 


142 

03 

.9.7 

4.7 

7.6 


173 

-145 

223 

203 

173 


12.4, +3.308 
6.5 +4450 
29.7 + 5.938 
. +2464 
'19JS +2240 

35.4 +1,240 
34 3 +2,458 
244) +1,425 

20.4 + 460 
+ 479 


1.081 

U03 

868 


I*;' 

ti'i 




290 

244 

334 

154 

65 

203 


1)945 
L984 
2,057 

24)81 

670: ,02+ 

675 

712 

690 ■t'-'.-wi 

684 


-+3,T32 
+ 856 
+L103 
+1,173 
+1^99 


9B7 

356 

347 

264 

437 


2jL57 

. ’ 66S. 


794" 

728 




.1 eanrihgs (Jan 1975= 100):'^ basfe r 

| £S2n v * oIesaia Prices of maouJactnred prodbefcs : 

*** food -prices <1974=100]; KT ■ 

1W2=100); 1 trade ***'■.<* \ 


A COMBINED filter and sQencer 
for air compressors that rig n l- 
ficamly redncea noise 
is available'. ; from . Balston, 
Moncktons Lane, - Maidstone. 
MEi4 2 qr ;; : ^ + : 

. When compared with a com- 
mooly used sintered polyethy- 
lene silencer, file Balsrtnn 
equivalent .has been, found on 
test. to reduce noise levels from 
88 dBA at seven bar . upstream 
pressure to 70 dBA. .and from 
81 dBA at 1A bar to 65 dBA, 
with . comparable savings over 
the range. 

. Capacity of a stogie Balston 
filter /silencer in terms of -air 
flow- rates ranges op to 
lOJOONm 3 ^ at seven bar UnB 
pressure. 'They. are made 1 ^ 
borosilicate glass . xnzerofibres 
with a fiuorcarbon resin 
and remove all viable ofl miff 


1981 
lstqtr. 
2nd qtr. - 
3rd qtr. 
'4th qtr. 
Oct 
Nov 

I' Dec 

1982 
lstqtr. 

|.*eb 

March 
April 
May . 




v' ■ 


l>'- 


js^-_ys 


'-Earn- 

Baric 

Whsaae. 



■"'FT*-'' 

T >_ 1 \ t 


ings* 

matis.* 

mnfg.* 

- RPP 



195.3 

212.8 

21 23 


268.7 

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Dicvfoi 


BEATRICE OIL HELD 

Today’s inauguration by Princess Alexandra of the Beatrice inshore field in the North Sea marks a number of 
V significant developments, both for some of the companies involved and the UK offshore industry in general 


Rewriting the 



BY RAY DAFTER, ENERGY EDITOR 


1. t,V-V-3J. ; . ! y£ y .* ' ■ • ■ • 


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BEATRICE, which started pro- 
ducing oil last September, is 
ione of the new generation of 
.medium-sized . fields to be 
exploited on the UK Continental 
Shelf. Estimated recoverable 
reserves are put at 117m bar- 
rels, a . seventeenth of the size 
of British Petroleum's early 
Forties discovery. Its develop- 
ment cost, at around £660m, is 
also a fraction of the billions 
invested in some of the biggest 
^Norlh Sea projects, 
c But Beatrice is the. first of its 
■type. Its unusual properties — 
-unique in . the North Sea — 
have presented special chal- 
lenges for the - operator, British 
^National Oil Corporation, and 
.the other four members in the 
field consortium; BP Petroleum 
Development, Demin ex UK- Oil- 
rand. Gas, Hunt Overseas Oil; and 
Kerr McGee Oil (UK). 

It was announced a few days 
ago that BP is selling its 15 per 
cent stake in the field to 
London and Scottish Marine Oil : 
for£75m. • • 

. This group of international 
companies' (British, American 
and German) 1 was faced with the 
environmental challenge . of 
developing a- field, in fishing 
grounds only 12 .miles" from the 
Scottish mainland in the Moray 
jFirth, an area of outstanding . 
natural beauty. 

To make matters wtirse, the 


poor-quality reservoir rocks in 
Beatrice have been reticent to 
release trapped oil. And the 
oil that is exploited is of an 
unusual waxy quality, resemb- 
ling brown shoe polish at 
normal winter temperatures in 
the North Sea. 

As a result of all this BNOC 
has had to instal water injec- 
tion equipment and small oil- 
lifting pumps to help the 
recovery operations. The oil is 
being heated and treated -with 
a tailor-made chemical (a pour 
point depressant) to make sure 
it does not solidify during the 
49-mile pipeline journey to a 
shore terminal at Nigg Bay in 
Cromarty Firth. 

.And rigorous environmental, 
protection systems have had to 
be adopted. For instance, the 
Beatrice Qil . Pollution Control 
Plan, designed to deal wfth any. 
oil spfllages, has been drawn up 
following consultation with the 
local- -community, the Energy 
Department, the Department of 
Trade, ‘ the Highland and 
Grampian regional councils, 
Croraajty Firth Port. Authority, 
the Nature Conservancy bodies, 
and the . river purification 
boards. . 

’ ‘ “ We have written the first 
book for. the ..industry on how 
to develop oil fields dose to 
shore,’'; said Mr Malcolm Ford, 
formerly with. Shell and now a 
BNOC . Board member and 




.. ■ 

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* .X *y . 






The Beatrice platforms are only 12 miles from the Scottish mainland in the Moray Firth. The challenges 

met here are expected.to influence future inshore prujects 


director in charge of the cor- 
poration's exploration and 
production activities. “ What we 
have done at Beatrice will have 
an influence on future inshore 
projects, such as in the English 
Channel." 

Mr Ford is also aware that 
Beatrice has helped. BNOC, 
only six and a half years ago. 
“ We are writing our track 
record on Beatrice," he said. 
Mr Ford pointed out that 
Beatrice was much more a 
BNOC project' than the Thistle 
Field development which the 
Corporation took over in a 
fairly advanced state of pre- 
paration from the previous 


operator. Burns ah OiL 

But BNOC cannot daim even 
Beatrice as its own. The field 
was discovered in September 
1976 by the previous operator of 
licensed block 1/30 — Mesa 
Petroleum. an American 
independent oil corporation. 

Mesa was applauded for find- 
ing the field in an area previ- 
ously looked at — and generally 
discarded — by others in . the 
oil industry- By the following 
year, 1977, Mesa .declared its 
discovery as a commercial 
prospect in. the belief that it 
could recover some 160m bar- 
rels of the 480m barrels trapped 
in the reservoir. 


■ Early in 1977 Mesa awarded 
the main management develop- 
ment contract to Bruwn and 
Root — Wimpey Highlands 
Fabricators. But the Energy 
Department took a dim view of 
Mesa's development proposals, 
originally based on a concept 
of offshore storage and tanker 
loading. ' The Department 
rejected the plans on environ- 
mental grounds. 

A revised application, based 
on the installation of a pipe- 
line and a shore terminal, was 
approved in August of 1978. In 
anticipation of approval Mesa 
had already gone ahead and 
ordered, two shallow-water pro- 


duction platfurms — one for 
drilling and the oilier for pro- 
cessing — from the Madrid yard 
of Dragados y Conslrucciones 
of Spain. The Spanish company 
had submitted the most com- 
petitive lender but the UK 
offshore supplies industry w’as 
far from happy. 

In 1979 Mesa bowed out of 
the Beatrice project, announc- 
ing that it wanted to consoli- 
date its activities. (In conjunc- 
tion with Tenneco, Mesa had 
just bought U.S. oil and gas 
properties from Ashland Oil at 
a total cost of $340nO In a 
deal, reported to be worth 
about $57m, BNOC acquired 


Mesa's 25 per cent stake in 
Beatrice. 

At fhe same time there were 
a number of other licence 
changes — including Deniinex's 
acquisition of Oeslenn Chel- 
sea. And the musical chairs 
have not stopped; hence HP’s 
proposed exit from Beatrice as 
part uf its rationalisation plans. 

BP is nor keen to hold a 
minority, non-operating stake 
in a relatively small oil field. 
But the company's decision to 
sell its Beatrice interest is still 
significant in That it is a sign 
of the oil industry's much mure 
relaxed attitude to future sup- 
plies of crude oil. 

It will be the first time that 
a major North Sea company has 
sold oil producing interests. 

BNOC was regarded as a 
contender for the BP stake, 
given its-. commitment to the 
Beatrice project and its interest 
in developing its equity oil 
portfolio! 

Significantly, BNOC points 
our that since it took over 
operation of the project 89 per 
cent of the value uf orders 
placed for offshore and 
terminal equipment have gone 
to UK companies. This 5* well 
above the average fur the UK 
content of total orders placed 
— 67 per cent last year, and 71 
per cent in 19S0. 

It must be likely that later 
this year (probably iu Septem- 
ber) BNOC will place the con- 
tract for a planned third 
Beatrice platform with a UK 
construction yard given the 
depressed state of the fabrica- 
tion industry and the Corpora- 
tion's “ buy British " policy. 
Like other operators in the 
North Sea. BNOC knows full 
well that its attitude towards 
helping UK industry weighs 
heavily in the minds of the 
Department of Energy when it 
is making discretionary awards 


of licences. BNOC will almost 
certainly be among companies 
bidding for new offshore 
exploration licences later this 
year. 

Under Government proposals 
Ihe general public will soon be 
able to invest in BNOC's ex- 
ploration and production 
interests, including its stakes in 
Beatrice and other North Sea 
fields such as Thistle, Clyde, 
Dunlin. Ninian. Murchison, 
Viking. Siatfjord. Hutton and 
Brae. As a result of legislation, 
nuw going through Parliament, 
the exploration and production 
inieresis are to be hived off into 
a new 1 -umpany called Britoil 
wiili the public being invited to 
buy HI per cent of. the shares. 
BNOC's trading arm — the 
operation which has .so much 
influence over North Sea 
pricing policies — is to remain in 
stale hands. 

The Beal rice Field provides 
a number of object lessons for 
would-be investors, possibly new 
iu the North Sea. The field has 
shown that exploration is an 
uncertain science; its discovery 
surprised the industry. 
Development, too. can. be a 
risky business. At one time 
those connected with the 
Beatrice project were hoping 
that the field would yield up to 
100.1KJP barrels a day. At pre- 
sent ir is producing oil at the 
rate of just 33.000 b/d and the 
peak — likely to be achieved for 
a short period in 1984 — is not 
expected now to rise much 
abo%’e 50,000 b/d. 

On the other hand. Beatrice 
demonstrates the industry’s 
ingenuity to extract oil in com- 
mercial quantities from 
relatively small, troublesome 
reservoirs in environment ally- 
sensitive areas. Many more of 
these fields will have to be ex- 
ploited if the UK is to remain 
self-sufficient in oil beyond the 
mid-1 990’s. 




















Extensive care to protect environment 


Novel technology 


PlANS TO instal an oil plat- 
form a few mites off some of 
Britain’s most spectacular and 
unspoilt coastline were greeted 
with uproar. 

Further proposals to bring 
the oil ashore by pipeline to a 
mainland terminal used by 

40.000 tonne oil tankers in- 
creased the apprehensions of 
naturalists and a conservation* 
minded public. 

Beatrice is within sight of 
cliffs which are the nesting 
grounds for an estimated 

400.000 sea birds and the ter- 
minal is near sandbanks which 
are frequently black with 
thousands of oystercatchers. 

The huge variety of birdlife 
— guillemot kitti wakes, long- 
tailed duck, widgeon — os well 
as the flora and fauna of the 
ccast and fishing grounds off- 
shore make it the site of a 
potential ecological disaster. 

The response of the British 
National Oil Corporation as 
operator in the Beatrice pro- 
ject has been to set up an 
extensive programme of pollu- 
tion control and environmental 
monitoring to accompany the 
field's development. 

This work, which has cost 
ENOC an estimated £2m, covers 
the academic and consultants' 


fees in establishing a pro- 
gramme. to watch the local 
coastline and the extensive anti- 
pollution equipment ready for 
use in case of a spill. 

Tbe specialist advice to pre- 
pare and carry. out the monitor- 
ing involve Aberdeen Univer- 
sity’s Department of Zoology 
and its offshore marine studies 
unit: the Field Studies Council’s 
oil pollution research unit: con- 
sultants Masspect Analytical: 
the .Nature Conservancy Coun- 
cil; the - Royal Society for the 
Protection of Birds, and Sphere 
environmental consultants. 

One of the problems in 
setting up an environmental 
study was that because no 
other., offshore .platforms were 
so close' to shore it was difficult 
tD establish - any norms. - 

Environmental groups most 
concerned and alarmed at. the 
prospects of oil exploitation in 
the Moray Firth feel that the 
oil company’s approach has been 
a responsible one. But there 
are reservations. 

To BNOC it was a question 
of both taking and being seen 
to take effective measures to 
prevent and contain pollution. 
Any further oil exploration, in 
the area would depend on the 
pollution difficulties of the 
Beatrice Field. 


Oil spUt at the pfatfonn itself 
could be .blown 1 ashore within 
SO hours. And -because the oil, 
once in the water, tends to form 
heavy blobs rather than the 
more familiar oil slick on the 
surface, normal chemical dis- 
persants are ineffective. Spills 
must be dealt with, using skim- 
ming nets or inflatable booms 
which surround .tiie oil. 

As one of the North Sea’s most 
modern developments, the plat- 
form’s operations ore exten- 
sively monitored by a computer 
which can quickly spot any 
leaks or potential ■ leaks. The 
entire complex can be shut 
down in 30 seconds. 

Oil dripping from machinery 
is collected in drip trays fo/be 
treated; pipes and pipelines are 
pressure tested. The 49 -mile 
pipeline to the m ainlan d ter- 
minal has been, buried one 
metre below the sea bed to 
make it secure from possible 
damage by fishing boats’ gear. 

Emergency shutdown proce- 
dures are also in force onshore 
at Nigg terminal. The two vast 
storage tanks are designed to 
prevent overfilling and are 
housed in concrete shells to can- 
tain any rupture of the tank. 

'At the jetty head a permanent 
boom has been installed to 


is oilman’s staple food 


YOU CAN spot .the oilman at 
Aberdeen’s Dyce Airport. He is 
often at the bar having his first 
drink after two dry weeks off- 
shore while he waits for a 
flight home. 

Often he wears a jeans suit, 
he occasionally wears an 
American baseball hat and 
may be carrying a Samsonite 
briefcase smothered with 
stickers from his past travels. 

If there is any AA or Michelin 
guide to conditions on the 
North Sea oil platforms, it is 
probably exchanged verbally at 
the airport bar where the paths 
of the oilmen cross briefly. 

Most of the comparisons 
about life offshore are about 
the hours spent off duty. With 
bis oil-smeared boots off and 
standing in the rack by the 
door, the oilman inside the 
accommodation module is as fir 
away as he is able to get from 
the noise of the sea below. 
Their rooms usually have two 
bunks, and clothes can be 
washed in tbe platform’s 


laundry in 15 minutes. 

Steak, predictably, remains 
the oilman's staple food 
although It does not always 
cover the plate as legend 
would have it. Occasionally a 
trawler will come alongside and 
offload a. few. .boxes of freshly 
caught fish for a special treat 

A soft Ice-cream dispenser is 
used rather like . the office 
worker might use a water 
fountain. The 200 men on 
Beatrice consume an estimated 
2,000 ice-cream cones a week. 

Bulging waistlines would be 
more of a problem were there 
not hundreds of stairs to 
clamber, up. and down in moving 
about the twin platforms. 

Beatrice is probably the only 
platform close enough to the 
UK mainland to pick- up shore- 
based television signals. On 
others a constant turnover of 
video cassettes provides enter- 
tainment. 

During the hours between 
shifts the oilmen may spend 
time either glued to their televi- 



sion sets or possibly watching 
birdlife. Some, are writing books. 

Work offshore is still lucra- 
tive for the top oilmen, engin- 
eers mid managers. The senior 
man on Beatrice can' expect 
between £25,000 and £30,000 per 
year. '• 

But wages at the level of. the 
manual workers and mainten- 
ance men have tended to 6e 
squeezed over the past year, 
according to employment 
agencies who supply them. 

A' manual worker might earn 
£14,000 for offshore work but 
much of the employment is tied 
to specific operations such as 
painting a platform and offers 
no assurance for the long-term. 

BNOC is . not unionised off- 
shore but the corporation has 
an understanding with... the 
Inter-union Offshore Oil Com- 
mittee, an association of unions 
affiliated to the TUC. 

Members of the UK Offshore 
Operators Association such as 
BNOC have an understanding, 
which allows the committee to 
visit installations to discuss 
with staff whether they wish, to 
join a union. 

m. M. 


encircle a 'ship and the 
jetty to contain an oil slick. 
Heavy fines face the operators 
pf a ship polluting the harbour, 
the company, brought in its 
pwn resident , ecologist to study 
the coastline. Thirty sites along 
the north and south coasts of 
the firth were monitored to 
identify changes and . outline 
specific protection - or -clean-up 
measures which might be 
required. 

The elaborate environmental 
monitoring programme has col- 
lected a great deal of scientific 
data and established monitoring 
systems In several - areas. 

• A study to set up methods of - 
recording changes in the shore- 
line conditions. The condition 
of rocky shores and mudflats 
were noted along with forms of 
animal life, to form a biological - 
portrait of the shoreline. Parti- 
cular quadrants were set out 
which could be compared' and 
repeatedly studied to note any . 
change. 

• An ' ornithological study 
monitored seabird breeding- 
population, the little known 
activity of seabirds at sea and 
studied seaduck and shore 
birds. Here, however, there 
h a s been criticism that th e 
studies are not sufficiently 
thorough. 

• A sublittoral study surveyed 
the seabed sediments in the 
Moray and Cromarty firths and 
a environmental quality study 
looked at coastal water samples, 
shellfish contamination and air 
and noise problems which 
might be created by onshore 
operations. 

In each case the studies were 
contracted by BNOC to outside 







The guillemot is one of 
the seabirds whose habi- 
tat imll be protected by 
special pollution control 
measures '■ 

specialist bodies. In many 
cases these were the organisa- 
tions which had the gravest 
doubts about tbe Beatrice 
development in the first place: 
bodies such as the Nature Con- 
servancy Council and the Royal 
Society for the Protection of 
Birds. These bodies axe still 
concerned about (he environ- 
mental issues. 

The studies, although pro- 
vided for BNOC, may be made 
accessible bo the public, to over- 
come possible accusations that 
unfavourable details would not 
be made known. 

Mark Meredith 


THE GENERAL development 
concept Taf the Beatrice Field 
differs vexy fittle from any of 
the- other .'commercial oil. pro- 
jects. in tiie North' Sea : product 
tion and - : accommodation, plat- 
formsi' linked . a ' carefully 
landscaped terminal by sub- 
merged pipelines. 

But there .are a number of 
unusual features about Beatrice 
which have given rise to novel 
technology in the context of the 
UK Continental Shelf. In a 
sense Beatrice’ is a test bed, 
being watched closely by many 
offshore consortia which could 
face similar challenges to those 
presented to. -the BNOC group. 

Ihe development of a field 
dose to shore dearly - presented 
its own environmental chal- 
lenges. But it is the - nature of 
the oil and its surrounding 
reservoir rode that has posed 
the greatest technological prob- 
lems. 

Although' Beatrice oil is light 
with a similar specific gravity 
to other North Sea crudes — 
38 degrees -under the American 
Petroleum Institute system of 
measurement— it is unusually 
waxy- The wax content repre- 
sents about IT per cent of the 
total weight of the oil This 
makes the oil extremely difficult 
to handle. . -. 

At the - winter temperattire of 
the North Sea Cabout'5 deg C) 
the oil resembles brown- boot 
polish. It has become part, .of 
the offshore industry’s folklore 
that without special^ treatment 


Beatrice ‘A’ production Complex 


.AUXILIARY 

ACCOMMODATION 


HELICOPTER 

DECK 


ACCOMMODATION 


ELECTRICAL 

SERVICES 


fflOCESS 

SECTION 


ELECTRICAL 

SERVICES. 


' POWER 
GENERATION 


• BEATRICE ' 

- INFORMATION % . 

Block; .11/30* , ; - \ - r l 

Oil reserves: abont 40flm 
barrels ' jj::-. 

Recoverable reserves^. 

: mated 117m barrels 
Peak oil production: just over. 
50,000 barrels 'a day (1984J, 
Reservoir area: 4^S00 
Reservoir depth: 6,700 feet 
(between Upper and Lower, . 
Jurassic^ : 

Type of oil: 38 degrees API; 
low sulphur content; 17 per - 
cent wax 

Water injection rate: 96,000 
barrels a day 

the pipeline between the field 
and the sbore terminal should, 
become “ the longest candle in 
the world ” — all -49 miles of it. 

The oil is kept in a ^ fluid 
state by means of a chemdcaf— 
an inhibitor known as a pour 
point depressant — tifiLomnade 
for Beatrice - by Shell Chemical. 
The chemical is injected into 
the well bores from the drilling 
platform. '• 

To help it on its way the : oil 
is heated to 65 deg U at the 
field and again at the shore 
terminal. Although the pipeline 
is not specially insulated, it is 
concrete-coated juid trenched, 
sufficient with the pour point 
depressant to maintain the 
in a mobile state. Indeed, the 
oil travel® at a healthy rate of 
one metre per second. 

Mesa Petroleum, the dis- 
coverers and original operator 
of Beatrice, viewed pipeline 
transport of such a waxy crude, 
with some misgiving and .put 
forward a plan to the Govern- 
ment for an offshore floating 
storage and loading - terminal. 
Consultants Hal crow, Ewbank 
and Associates warned the Gov- 
ernment at the time: “The mag- 


id sgsr 

’ ■ , 'ii?;-' ■ 


*' nitride of this mooring problem, 5 - 
and 'the/potential consequences *■' ' 
should- the mooring - .fafh are " 
probably without precedent * ' '' 

Hr : andther report, also com- 
missioned by the^ Government, • 

: ■ consultants WftJiam&Merz cqp- . . 

: chided =ihat a pipeline-. method 
of on.-: transport would be * 
feasible and would involve no> 
new technology nor any sdgnifi- tr 
cant advances. ; from, current s. 
practice. ii ... 

■ Consequently^ 7 i. the .'.Energy"? 

Department took ah :uniis*ud^ 

. step and: on November 25 1977^ 

- rejected the £eld -development: 
plan based- on offshore, loading,:!? 
Tbe - pipeline method Wasi ■ 
adopted.,: ->. '.-1/ - 

But ■ BNOC . and its partners. V. 
have ■ bad ■ ; another - major® . . 
problem to-contemT with- The 
field, lying at a depth of 6,'7Q0ft’ f 
below 15aft of water, has the p 
most challenging reservoir - .. 
characteristics. The porosity,*, 
and permeability of. the reser- • 
voir - rocks are poor which "s " 
means that tbe oti cannot flow« - 
freely.' To make mattere muek a 
worse , the reservoir , rocks are 7 
thin and broken up with very f 
little natural pressure and In- * 
sufficient gas. " ... ,v v , ' ;j r ' 

All this has necessitated .toe - ‘ 
installation of a water mjecthm ? 
system <to boost the reservoir^' 
pressure) and down-hole anh-i 1 
mersible pumps to assist the dfilA 
to the surface. - 

It is possible that before top' " . 
many years have passefl. British : 
Petroleum and, others will be 
using down-hole .. pomps to 
exploit some bf the vast re- 
. setves of difficult-toproduce oil 
which, lie to the west of the : J . 
Shetland Islands. If this proves 
to be tiie case, Beatrice- will j -.. 
have provided the .industry i- 
with valuable operating expert--^ - 
ence. .... _i v 

: ■: . R. D;r 




DRILLERS’ 

DERRICK. 




information 

FOR SALE 


Drffling Watfnmi 


Production Watfomi 


Source: BHOC 


High number of British suppliers 


In the Energy 
Business you need the 
Energy Expertise Bank. 
Contact our Oil and 
Energy Department 
38 St Andrew Square 
Edinburgh EH22YR. 

TeL 031-556 223L Telex 72407. 


INTERNATIONAL DIVISION 


EDINBURGH - ABERDE E N • LONDON • 

NEW YORK - HOUSTON - LOS ANGELES - MOSCOW 


THE VALUE of sales of offshore 
oil and gas" will probably reach 
more than £13bn this year. 
About one-fifth of the money in- 
vested (in industry tin the UK 
goes into oil and gas production. 

This is -the^ impact of the 
North Sea on tbe economy of 
the UK and the most import- 
ant reason why the Government 
through an office in Glasgow 
does its best to encourage off- 
shore developers to use British 
industrial resources. 

The Offshore Supplies Office 
also watches the actual propor- 
tion of the orders going to 
British-based — but not neces- 
sarily' British-owned — companies 
each year. 

This figure last year dedsned 
to 67 per cent from 71 per cent 
the previous year reflecting 
some slowdown in offshore deve- 
lopment 

•- BNOC took over as operator 
of. the Beatrice project from (toe 
American Mesa Petroleum Com- 
pany after a worrying start in 
terms of British business. The 
contracts for the construction 
of the platform jackets— the 
' steel ‘legs winch go down to the 
.sea floor — had already gone to 
a Spanish company, Dresgados y 
Oonriracciones, though much of 
the steed was British. 

Since St took over, -however, 
BNOC has •' achieved an esti- 


mated 89 per cent UK content 
of the work More than 55 com- 
panies are on the illst of con- 
tractors who helped build the 
offshore platform and onshore 
terminal at Nigg. A further 30 
companies helped out supplying 
tbe project with everything 
from drifting equipment to 
decorations for the accommoda- 
tion modules. 

At a crucial stage fin the 
building of the platforms BNOC 
established a presence in tbe 
McDermott fabrication yard at 
Axdersier near Inverness to 
supervise and test equipment as 
it was in production. Fabrica- 
tion yards often do not take 
kindiy to such dose attention 
from a client, but BNOC engi- 
neers fed the co-operation 
worked well and achieved great 
savings in time, especially on 
pre-testing equipment on com- 
pletion. Experts were brought 
in from the Thistle field and tile 
result was even an underspend- 
ing in some aspects of comstouc- 
tum. 

At tiie Nigg terminal, by con- 
trast, there were snags to be 
sorted out, BNOC found. The 
tenrraoal was built on reclaimed 
land in the Cromarty firth, 
which had been dredged by 
Costain Blankevoort (UK). But 
in constructing a jetty from the 


storage tanks to the tanker 
berth it was found that -the steel 
piles were not setting tm. the 
soft ground. 

Against time George Wimpey 
Engineers devised a technique 
of using finned piles, welding 
four or six “T” sections akmg 
tbe bottom of the piles to give 
them better purchase in the 
©round. 

Offshore the heavy machinery 
of the production platform, 
where the oil fis treated and gas 
taken off, was installed. Seven 
Rustam turbines were bolted in. 
place to produce enough elec- 
tricity for a town of 15,000 
people. They were to be 
powered by the gas brought up 
.wfflh the oiL 

Honeywell computes were In- 
stalled to monitor all aspects of 
d rift ing and production as well 
as the elaborate safety and anti- 
pollution measures on Beatrice. 

An estimated 25 per cent of 
toe production costs In toe 
£650m project frs thought to have 
been spent on the special steps 
for handling Beatrice’s waxy 
type of crude oil. &nahtdmg 
Lagged piping and ofl fiiandWng 
equipment and heating plant 

The hold of one of toe three 
sipply boats from StfiriHng Ship- 
ping, toe Starting Sward, was 
converted to carry toe special 
RPD solvent which is used to 


increase the oil's fluidity. The I 
Stilling Skua and Stirling Cor- 1 
morant each . make about 10 
round trips a month to supply -i 
the Beatrice platform. 

BNOC takes delivery of an 
emergency . vessel, the Moray 
Haisted, from Harstad Marine 
later this month. It will have 
firefighting and anti-pollution 
equipment and will replace two 
vessels, tbe Rig Express fire- 
fighting, vessel and Clean Seas 
One, presently on station. 

On shore, BNOC has been 
having second thoughts about a 
supply base which the . Cromarty 
Firth Port Authority . had 
pressed it to build at Iflver- 
gonhra, near Nigg. BNOC wants 
to service Beatrice from Peter- 
head and has drawn up plans to 
seek outride contractors 
interested in operating or buy- 
ing toe Invergorden base for 
offshore work. 

Although Beatrice Ss only 12 
rnrles offshore, transporting the 
200 crew to and from the plat- 
forms still involves a 40-ndnute 
helicopter ride from Aberdeen. 
Bristow Helicopter’s large S-61 
helicopter, toe Kilo Bravo, - was 
virtnaSy assigned to Beatrice, 
spending 80 per- cent of Sts fly- 
ing work carrying men and sup- - 
pittes back and forth. 

M. M. 


I . - I contracts, tedmalqgsv finance, sovcnHnaitpoBqf«KMMalW- • i 
activities.. ; 

I- --I European Energy FroS® (twiceTnontWy) amhpscsfbc ennrat 

■cncigy'pictuieofeachoftafrVWestEtuopeaDconiezies its turn J 
mth ao^am ualievfewofWestciaEninpcasawhoiemaldngiytte j 
,20th issue.- "•••;' . - J 

. EBOT^yEcomumst (omirffily) provides a rcgnfer<wivi(nrotjTOdd ,1 

cp(^dt^^pc«^withfliccinp tai aa n a n al}as p r« li ct i oo 
and trend ide n t ifi cati o n.. . . 

Inhriatipj CaalRqwrt (twice m cattily’) provides np e faf esqa .- 1 

eawfriaymaitea. govcnna i eotpoBcies.ii i tf t suuen tpfeug, ?. .. ‘J 
distribufi on. tedmohwy; oasts, oamncsaad UendsiB - : j 

couMnmitkm and production. : , l ,: j 

World Solar Marfctts(monlfi!y) reports amd analyses .] 

de^o ^ieiii ataagworMr^gigtecn cgriiidMayptopOBMIg I 
— bo anesa aadinfWtuiantopponimMafc • w- 

□ Worid PMwdmfcrt (tv^mantUy)rcpoftsandanalvsesa»' . .-'tj 

. yrtS^ranpaznes.^^^^raand^oAno^^ 1 . ...P™**. ^-’j 
To receive a sample copy ofanyof these TzewsfeffOT,-^. 


To*. The MarkcSmgBcpaitment. "FT BhsmessIirfartnalBtml-ii, 
Bracken House, 10 Cannon Street, LONDON EC4P 4BY^^ ^ l 

Name — — - - . •; L' •' .-• .j 

■Position ' • ' ■ 

Company _ _ - - _ : • . ' - - - - ■’ ^ r -- 

Addres ; 

— Jatephono _ _ ^ 

Nature ofBt mieffic . • / • J : • ' 










CONGRATULATIONS TO BNOC 
AND OUR THANKS 
FOR THE OPPORTUNITY 
TO PARTICIPATE IN 
YOUR SUCCESSFUL 
BEATRICE PROJECT 



• r'V.’--.:”* 




Hethil Works; W^Iesto Road, Buckhaveo, Fife, Scodaml. KYRSia^ 

; w.- f Teiepboiie: 0592 268181 ' ; 

'' ^ Telex: 727194 R6CM-6 ; " > 








35 




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•v..'. . viV ' • 


CONGRATULATIONS TO BNOC ON 
THE INAUGURATION OFTHE 
01LTERMINAL 






■ •••->.71. 


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CS$Djaac^4 f :T-imies..'.TKiiK8day JunelO .1982 


BEATRICE OIL FIELD IH 


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Greater priority for smaller finds 


THE DEVELOPMENT . of the ' 
Beatrice Field is' a dear sign 
that the North Sea oil industry 
has left behind -the euphoria of 
the initial giant discoveries and 
settled into a pattern familiar 
to all who have worked in 
mature otl^roducing regions. 

Now. development : work is 
based largely on the esloitatioh 
nf . medium-sized . fields,' pros*: 
pects. which might- have been 
given a fairly : low priority in 
the 1970s when ~ interest .was, 
focused on . such huge dis- 
coveries as the’ Brent Forties 
or Ninian fields. . . * ’_ 

According fo the UK Offshore 
Operators Association, the first 
26.- . fields — how producing or 
under ' development — contain 
average recoverable reserves of 
more than 400m ' barrels! On 
this basis. Beatrice .ranks a$ one 
of the smaller fields although it 
does have the advantage of 
lying close to land in relativity 
shallow, water. • *■’•••.•. 

But. Beatrice's ■. reserves 
appear" attractively- ; large . when 
set against the majority of 
fields that will be exploited in 
the future. The operators’, 
association has identified 
another 11 potentially commer- 
cial fields which, it says, con- 
tain an average of 100m barrels 
of recoverable oil. British 
National Oil ' '! Corporation’s 
Clyde discovery falls into this 
category. 

Beyond that there are , 
reckoned to be at' least 37 . 
" marginal-” discoveries can* 


'taining an average of only 60m 
barrels. . If the North Sea 
■follows the “pattern of other 
mature oil-producing regions it 
will be .these smaller fields 
which , will make up tfie bulk of 
future development . projects.- . - 

; ;Latest Energy Department 
estimates show there is a good, 
deal more oil to be found and 
exploited in the North Sea and. 
ether parts of the UK Continen- 
tal Shelf. Oilteserves in present 
discoveries are thought to be 
-in the "region of 3.5bn-1.8bn 
tonnes, some -four to five times- 
the amount ' of oil produced 
from the North Sea so far (354m 
tonnes}. At the present rate 
of UK- oil consumption (about 
75m tonnes annually) these re- 
serves should be sufficient, to 
last well over 20 years. 

. But the' . Energy Department 
believes that there could be up 
to 2.2 bn tonnes of recoverable 
oil contained in future dis- 
coveries. If the UK continues 
using oil as it does at present 
then ultimately there , could be 
dnough " domestic supplies to 
keep the country self-sufficient, 
in oil for the next 52 years. 
If you listen to some of the 
'more . optimistic . forecasters, 
such as Prof. Peter Odell . of 
Erasmus University, Rotterdam, 
you conld conclude that ' the 
picture. is even rosier. 

And yet there Is real doubt 
that the present state of oil 
self-sufficiency . can be main- 
tained much beyond the mid- 
1990s. In spite of - all that oil 


-lying on the UK Continental 
Shelf, the country may find 
iteelf -becoming a- significant net 
importer again well before tbe 
[tom of the century. 

That Warning has been re: 
pe&ted time and again during 
the past year. For the oil in- 
dustry claims it has insufficient 
Incentive to invest in expensive,, 
and' risky’, oil field development 
projects. It is now two years 
since an oil company sought 
from the Government— and 
-gained approval for— a new oil 
field ..development 

Builders of offshore platforms 
■and, -modular production and 
accommodation equipment are 
' screaming for new orders. 
In .recent months over 2,000 
jobs have been put at risk 
through the posting of redun- 
dancy warnings. 

Capital investment in the 
North Sea last year may have 
reached £2Bbn— about one-fifth 
of total UK industrial invest- 
ment— but that level of spend- 
ing. was largely influenced by 
development decisions taken a 
couple of years ago. As one 
leading oil industry commenta- 
tor put it: “The oil companies 
have gone on an investment 
strike.” 

There is no single reason for 
this hiatus, as the operators of 
three 1 : deferred projects have 
-emphasised. Shell, with its Tern 
Field, Phillips Petroleum, with 
its complex of reservoirs Id the 
so-called T Block, and British 
Petroleum with it? Andrew dis- 
covery have all shelved develop- 


ment plans -giving as their 
reasons oil ./price uncertainties, 
high taxation, and the need to 
review production technology. 

The recent fall in North Sea 
oil" prices— the reference level - 
dropped from- $39.25 a barrel to 
$31 a barrel before rising again 
to $33.50 on June 1— and; the 
more cautious view, about future 
pil price rises have, forced all 
operators to Wbk again at their 
production techniques. -Their 
aim will be to reduce develop- 
ment costs by employing new 
technology such as floating pro- 
duction systems and seabed well 
units. 

01! companies may be con- 
cerned about* oil prices and 
technology,. but it is the vexed 
question of taxation that is pro- 
voking . the most persistent 
industry outcry. .For years com- 
panies have moaned about the 
level of taxation'. In the past 
12 months or so they have 
added to their complaints the 
uncertainties caused by a con- 
stantly changing tax system. So 
concerned did they become that 
the industry agreed to submit a 
unified challenge — through the 
-Offshore Operators Association 
— to Sir Geoffrey Howe. Chan- 
cellor of the Exchequer. Such 
unity was impressive in itself 
given, the widely varying tax 
position of the association’s 
member companies. 

- The Chancellor listened and 
acted in his March Budget, H6 
proposed the phasing out of the 
much-maligned Supplementary 
Petroleum Duty but at the same 
time he changed the nature of 


Perseverance in 
unconventional 

field paid off 


A tanker loading dt the terminal. A permanent 
boom is installed at the jetty to encircle a ship in 
the event of an oil spill 


Petroleum Revenue Tax. The 
outcome was that the marginal 
rate of taxation was reduced 
from 90.3 per cent to 89.5 per 
cent The industry Is still com- 
plaining bitterly for in the 1975- 
78 period, when it was being 
encouraged to develop fields as 
quickly as possible, the marginal 
tax rate was just 76.9 per cent. 

Within the past few weeks 
the Chancellor has turned, down 
an' offshore operator’s request 
for a joint industry-Treasury 
study into the tax structure. 
But he has invited companies to 
submit information about indi- 
vidual projects, 

The Government, with its 
need of tax revenue (£6.4bn in 
19S1-82). Is as anxious as any- 
one to see new North Sea fields 


developed. Companies are- con- 
fident that eventually the right 
tax balance will be struck. This 
is one reason why they con- 
tinue to bid for exploration 
licences and carry on looking 
for new reservoirs. Last year 
73 exploration and appraisal 
wells were drilled an the UK 
Continental Shelf. Exploration 
activity was at tbe highest level 
since 1977. Twelve discoveries 
were announced — the highest 
number since 1976. 

Whether these new dis- 
coveries will be developed will 
depend ultimately, to a large 
extent on future oil prices, pro- 
duction technology and taxa- 
tion. 

R. D. 


Government to sell part of BNOC stake to investors 


THE GENERAL public will 
soon have an -opportunity to 
invest ih- British National Oil 
Corporation's " 28 .per cent 
operating stake in the Beatrice 
Field. 

Thh oil-producing asset will 
be part nf nn exploration- and 
production- package -that the 
Government intends -to sell to 
the- public as part of its wider, 
“privatisation” proposals: ‘ 

- Included. tn :the. deal . will .be 
interests - in :af? ieast'a dozen/ 
commercial and probably com: 
merciai oil and . gas-- fields in- 
cluding ^ seven in ^ production . 
(Beatrice; : -Dunlin, -/Murchison, 
Ninian, Statfjord, Thistle and 
Viking)', 'two - under develop-- 
mpnt (Brae and Hutton), and 
at least three which are. likely, 
to-: be exploited in' the next few 
years (Clyde. -.North Brae -and 
North Thistle), ■ 

BNGC's equity interests in 
these fiel&r together .with - i ts 


other - extensive exploration 
acreage, are to be. hived ' off 
under a new company — Britoil— - 
as a result of the Oil' and Gas 
(Enterprise)' Bill now being 
steered ' through '" Parliament. 
Mr Nigel Lawson, Energy Secre- . 
taiy, has-made-it. plain that he 
wants to - offer .to the public 
51 per : cent of . the shares - in 
Britoil before the end. of the 
year. ' • ~ : - 

, .The exact timing of the sale, 
and' the likely , amount to be 
raised for Treasury coffers, are. 
still . a matter of some . conjee- •' 
ture. Much will depend on the 
City's confidence • in tire oil 
sector of the Stock- Market 
which', in. _ turn, /will be. in- 
fluenced by oil price , projec- 
tions. V ... • 

Mir Philip Shelboume v : .the- 
Corporation's chairman, hinted 
six weeks ago that shares could 
be offered in October, or 
r November,* possibly ; on a. partly- 


paid basis. By spreading the 
payments over a period— -say. 
six months — the danger of 
indigestion in the. City would 
be reduced. Internally, BNOC 
has been working on the 
assumption that the sale could 
raise about £750ni. 

The extent , of the assets on 
offer is indicative of the excep- 
tional and controversial growth 
of the state- oil corporation 


When it emerged in January 
1976. the Corporation received 
considerable Government en- 
’ couragement to acquire North 
Sea Interests, (and expertise) 
from the National Coal Board 
and the then ailing Burmah 
Oil Corporation. Under Labour 
it was given preference in 
exploration licence rounds. ' 
Under the Conservatives, 
however, BNOC has been 


How BNOC Has Grown 

1977 1978 1979 1980 1981 


Sales (£m) - 38 

Net fixed assets (fin). 527 

Pretax' profit (loss) (fin) (30) 

Crude oil sales C000 barrels per 

day) Nil 

Involvement In exploration and 
appraisal wells 21 


432 3,245 4,323 5.752 


693 

(26) 


901 1,000 1,085 
77 309 439 


154 939 947 1,046 

22 23 25 26 

. Source: BNOC. 


■stripped of most of its 
privileges. It has been told to 
act like a commercial oil cor- 
poration. 

But thanks largely to those 
early years the corporation has 
emerged as a major force in the 
North Sea. Its equity share of 
production at the end of Decem- 
ber was 142.000 barrels a day, 
an amount which is still rising. 
Last year the corporation was 
involved in the drilling of 26 
exploration, and appraisal wells, 
more than a third of the total 
sunk on the UK Continental 
Shelf. 

BNOC's influence is even 
more marked in terms of oil 
trading and price fixing. In 1981 
the corporation handled just 
over 1m hartals a day of crude 
oil — more than 58 per cent of 
the total amount produced on 
the UK Continental Shelf. Most 
of this oil was traded on behalf 
of the Government, which is 


the reason why the corpora- 
tion's trading activities are 
being excluded from the Britoil 
sale and are being kept in State 
hands. 

The traders, handling large 
quantities of oil taken by the 
Government under royalty and 
state ' participation arrange- 
ments. will continue to main- 
tain a low profile. Following 
the “ privatisation ” exercise 
the spotlight will be trained 
even more intensively on the 
corporation's .exploration and 
production activities. 

' In this sense the Beatrice 
Field will be picked out as a 
marker in the development of 
Britoil. Unlike the Thistle Field 
project, largely inherited from 
Burmah. BNOC has been 
responsible for both installing 
and commissioning the Beatrice 
production facilities. 

D. 


R. 


Tbe £5O0m development of 
the Beatrice field has 

followed a highly unconven- 
tional pattern — right from the _ 
summer day in 1976 when oil : 
was first found in what was 
then known, only as block 
11/30. 

An exploration licence for 
block 11/30 had " been 

awarded in 1972 under Che 
UK’s fourth . round of 

licensing. Bat few oilmen 
thought there was much hope 
of making a significant 
discovery in the area. The 
block was close inshore and 
seismic surveys did not look 
very promising. 

Yet a consortium of mailer 
companies — Kerr - McGee, 

QpuHU Creslenn, P & O Petro- 
leum and Mesa Petroleum, 
the operator for the group- 
refused to be disheartened 
about the prospects for find- 
ing oil. And their persever- 
ance paid off — in more ways 
than one. Many oil industry 
experts beBeve their 
discovery of the Beatrice 
field has ensured riuf smaller, 
independent companies will 
never be excluded from 
North Sea exploration. • 

Approval for the. develop- 
ment was given in 1978. Tbe 
following year saw the first 
changes hi the original con- 
sortium which had found the 
Beatrice field. Creslenn’s 15 
per cent interest in the field 
was taken over by the 
German-based Deminer— with 
BNOC haring an option to 
1 take one- thir d of that in- 
terest 

At tbe same-jtime BNOC 
took over the Mesa interest 
with a separate agreement 
with- Deminex that should 
have 12 per cent of Mesa’s 25 
per cent stake while the 
corporation would have 13 
per cent. 

The agreements, which In- 
volved BNOC paying 857m 
for Mesa; were completed in 
1979 — the year in which the 
state - owned corporation 

acquired part of Hunt's 15 
per cent stake in the field and 
In which British Petroleum 
took over P & O’s 15 per 
cent interest - ■ — 


The result of this' some- 
what complicated change of 
bands was that BNOC 
achieved its at™ of becoming 
the operator on the Beatrice 
field. Mesa appears to have 
sold ont because it wanted to 
concentrate on its real forte— 
exploration. And BNOC 
wanted another operatorsbip. 

At the time, the corpora- 
tion had had only one oper- 
torship— that of the Thistle 
field. It had taken this over in 
1976 and Thistle had started 
production In 1977. BNOC bad 
therefore been on the look- 
out for another operatorship 
that would give it further ex- 
perience as well as con- 
tinuity. 


BP sells its stake 

Today the Beatrice partner- 
ship is as follows: BNOC, the 
operator, has a 28 p er cent 
stake: Deminex (UK) Oil and 
Gas has 22 per cent; Hunt 
Overseas Oil has 10 per cent; 
Kerr McGee has 25 per cent 
and BP Petroleum Develop- 
ment 15 per cent — although 
BP has now announced 
that it is to sell its inter erf. 

It is thought that BP wants 
to concentrate its efforts on 
fields where it either has the 
operatorship or where it has 
a larger stake than 15 per 
cent 

BNOC’s 28 per cent share of 
the £500m cost of developing 
Beatrice was met from 
general corporate finance— 
which in the corporation’s 
case means that most of the 
money came from the 
National Oil Account a 
Government fund set up when 
BNOC was established in 
1976. 

The account is to be ended 
when BNOC’s exploration and 
development activities are 
floated off later this year. The 
new company. Britoil. will 
take over the operatorship of 
Beatrice. BNOC does not ex- 
pect the handover to bring 
any problems — merely a 
change of name. 


Sue Cameron 


: : -v :r.~-zrzatal 

«r-i .r.*Mi.=rv» | 
js^:r-w-viiicaa 

.-\'--V.TB±fC3S 

,--\ — 'JSsrefl® | 

saw SEP**! 

".-rrs rrixdg*! 




.'. .-re ! 

Lj ;.'v':y as ! 


•nDCNE-'** 1 ! 


Wimpeymeetsa 


When you’re Europe's largest contracting organisation r you can certainly 
recognise a challenging contract when you get ona Nigg Oil Terminal is where 
the oil from the Beatrice field is piped, processed, stored and loaded out onto 
tankers. This project presented just such a challenge and Wimpey completed it 
on time (in just over two years). It demanded the consistent efforts of our 
specialist subsidiary and associated companies interlocked with the multi- 
disciplinary skilis of the Wimpey project management; design and construction 
teams to provide a “total capability” service. 

■ Ona multi- million pound contract - built upon undeveloped ■ 

.foreshore - the pre-planning and integration of the engineering work with 
procurement and construction was vital. Computer aided design and management 
technology proved to be a major factor in the achievement of the light project 
programme ; 

This is howthe many elements of the Wimpey Group participated. 


WIMPEYJNTERNATIONAL 

Wimpey International provided the overall coordination of the 
project A dedicated task force team was established which 
worked closely wifh the client in the establishment of systems 
and procedures to ensure the efficient progression of planning, 
design and engineering, procurement of equipment and 
materials and the execution of the-construcdon works. Data 
processingsystems wereemployed to ensunsthat atalltimes, 
the progress and cost evaluation^ all aspects of the ■ 
development coDlcfbe related to the project objective. 

Wimpey International also carried outall civil and 
building works comprising the terminal and the associated 
deep water tanker berth. 

WIMPEY LABORATORIES 

The terminal began with the reclamation of 30 hectares of 
: land from the Cromaity Firth. The ate investigation was 
undertaken by Wimpey Laboratories, with particular . 
reference to quality of fill materials, toad bearing potential, 
effects on tidal flow, pollution control and environmental ; . 

. considerations. 

WIMPEY MARINE 

.This is a specialist company with - among otherthings - its 
own independent fleet On the Nigg project, itwas responsible 
for the supply and operation of marine equipment for the 
construction of the deepwater tanker berth. . / 

WIMPEY MECHANICAL, ELECTRICAL AND CHEMICAL 

Wimpey ME&C installed the process equipment and the vejy • 
large quantities of cabling and pipework 'mcorporated in the 
terminal Jo carry out this work in such a short time ^&C 

Engineering 

client BNoii (Development) Ltd. Gonstruction * Development 

George Wimpey PLC, Hammersmith Grove, London W6 TEN Tp \: 01 748 2000 Telex; UK 25666 Overseas 22436 


were required to mobilise very high levels of resources, both 
■ machines and men, and succeeded in welding together a 
site team to achieve a satisfactory rate of progress. The 
ability to execute mechanical and electrical works whilst 
ihtensive.avil and building activities were under way 
required comprehensive construction management skills; 
ME&C also played a major part in the overall project 
management and design effort. 

BROWN AND ROOT - WIMPEY HIGHLANDS 
FABRICATORS 

This Companyis fabrication yard and rolling mill at Nigg Bay 
adjacent to tfie terminal, were brought in for the production 
of piles, structural steelwork and jacket structures for the 
tanker berth. 

WIMPEY ASPHALT 

Wimpey Asphatt surfaced over 6km of roads around the 
terminal and laid the special sand-bitumen bed upon which 
-the major. tanks .wereconstructecL 






SreS 7 


Financial Times -(&ursday , Jun,fe- 1ft .1882 ^ ' 





DIVISIONAL ACCOUNTANT 


£13,000 


tee 25-30 


The expanding financial services division of a major insurance broking group requires 
a young chartered accountant to head its accounts team. Reporting primarily to the' 
Fmance Director, he or she will become Involved in general management, financial 
reporting and other duties. 

Candidates should have a flair for systems and the personal qualities to enable them 
to contribute to a fast-moving, entrepreneurial organisation. Experience of computer 
operations and of the insurance industry is desirable. . This is an opportunity for 
commercially-minded accountants wishing to leave the profession^ 

Please apply to Sir Timothy Hoar*. 


Chichester House, Chichester Rents, 


London VVC2A lEG.Teh 01-242 5775 



Financial Director 



wnate 


Midlands 


c.£14,000+car 


Our client a highly enterprising and -profitable private company 
producing a range of garments for Marks & Spencei; is creating this 
new appointment to bring a professional direction to the manage- 
ment bf its entire accounting and finance function with an 
emphasis on the development qf systems appropriate to its growth 
planned to reach £15M by 1984. 

Candidates, male or female aged ideally under 3 5, must be qualified 
members of one of the feading accountancy institutes, and be 
experienced at or near Board level with evidence of drive and 
commercial flair. 

The salary package is negotiable around £14,000 p.a.plus company 
car and other normal benefits including re-location expenses, if 
appropriate, to an attractive Midlands town. . 

Please write in confidence, initially with brief details, and quoting 
reference 1226 to John Anderson, as Advisor to the company, at- 


John Anderson & Associates 

Norfolk House, Smalibrook Queensway, Birmingham B5 4LJ. 


GROUP FINANCIAL 
ACCOUNTANT 


Qty e. {15,000 + car 

For a leading publishing group with a pattern of 
growth and plans to remain in the forefront as 
information providers. 

This growth creates the need for an additional 
accountant at group headquarters to take over 
responsibility from the group chief accountant 
for fi nanci al accounting (including quarterly CCA 
accounts), cash and credit control, tax liaison and 

assistance with corporate plans and the develop- 
ment of Management Information Systems with 
financ ial mod elling : 

Suitable candidates, male or female, must be 
chartered accountants aged 28-35 with senior 
experience in an international practice or in a 
commercial/industrial company with sophisticated 
acco untin g systems. Man-management experience 
would be an advantage. 

For an application form telephone 01-236 3561 
(24 hour service) or write in confidence, quoting 
reference 1821/L, to M. J. H. Coney, Peat, 
Marwick, . Mitchell & Co., i65 Queen Victoria 
Street, Blackfriars. London, EC4V 3 PD. 


A trans-national Construction Company requires a 


rar. Mm i 


based in Central London to look after its financial 
and banking interests. 

Selected candidate may be aged between 26-34 
and a qualified Chartered Accountant with at least 
four years’ experience in all aspects of commercial 
banking gained in a large international bank. The 
present job could be a stepping stone to wider 
development in a forward-looking organisation. 

Salary and perquisites are negotiable. Please 
write in confidence to: — 

MAKERS DEVELOPMENT SERVICES PVT. LTD. 
16, Castleacres, " Hyde Park Crescent 
London, W2 


At 


Wi! j i 


Major Publishing 
Company 25/32 cfn/£l2,ooo 

Oar nrpwt h as international anddfrerseintErests across the whrfefiddof magazine 
publishing, directories and computerised information areas. They stek aTrecently 
qualified Accountanttopecform anlntemal Auditrole atHead Office level. In addition. 


JlSC/DUW LULUU Uw AUVUlVbU 1U lUOUagCUimiraiA.UUUb^ f t M 

etc. Ctar Client’s offices are in CentralLondonbutthe job wffliodade around sixweeks- 
travel per yearto Australia, South. Afijca, Scandinavia etc. i 

They seeka25/32 year old, ACA, ACMA, eirACCA who has experience of audit 
work and of computerised systems. The person appointed should be a practical 




tn financial rp ^nngp-mpmf in amrmri twnyearrf time. 



Financial Controller 



London W.l 


c. £17,500+ Car + Benefits 


Onr dienfis aprofessicinalbodyfor doctors and dentists irtfhg UK and overseas 
pnv irirng wn adv isory and fadminffysgroina. In 1981, there was a membership of OTBP ?• 
100,000 and. a sifosradptfon Income of over £8 million.The Head Officeisin LondonTtifil . 
Tmmdh nfflrgg fnT^nrnrhnKftypaTid fiy dng y Aiisfrraifa, anri thpro te StlODgOVEZSeaS 
■mrnih grgh-ipTn Hninm OTi WRal f h m rmfTnRS . ' 




■m piafTmnpnt, respaiisiblsi orp olicymakijQg and pla prnrig wjtb paT tiptilar 
fm anri a l, m i p ntingfln tiailTnhiis tTatiTO aspects. *•" 

Onrdient seeks snapplicantwhohas: \. . 

1c qualified as a Chartered or Certified jtecdrmimil artdis aged between 33and5n. 
1e the ability to ranmimiicateeffectivaly at ajllevelk . 


pn ggihTy anrr nTTTtnnrry rir^nfflT rm^r^ . : •* . ..... 

1c demonstrated. a~wjllmgness to travel abroad. . ;:v . . ". . • ' ’ . - 

^ihe ability to manage sometwehtystafithzou^hfiizeejnanageis*' 

Our cJleninffets: • * • • 

1c astinmlafing and dfellerigmg positicin, Tespahsibleio ihe duefexfictttfae. 
• tfr aprogres s i v e salaryTBlatedto merit and the costof living. 

1c gene ro us holiday and personal insurance aTTrmgPTn mrte. 
tfcacCTcannnensoiatewfiih status. • 

-j^ advantag pmig hpnRingmfiiplff Hgiq TrtpTT i igRiYinnfc. 




vifne quoting reference 5840 tos 
Peter Childs, . 

‘Raim *»n TGrro T farghmAgOTrinfag, 
LeeHoose, 

London Wall* 
LONDONJECarSTSAL 


fennellKeiT 

Eirster 

Associates 

M»«Saon-<xHSLO<iNis 



OAl MANAGEMENT 


Our 1981 Annual Report shows' pretax profits of £438 million on equity sales of £832 million; 
capital expenditure was over £260 mil lion. The Corporation was the most active explorer on the 
UK Continental Shelf and is expanding into international activities. . 

New challenging senior positions, based in our Glasgow Headquarters, have been identified in 
two business areas: 


manages exploration, appraisal, development and 
production where BNOC is the operator currently on the 
Thistle, Beatrice and Clyde oil fields and the Northern Leg 
Gas Pipeline. 

M@w^c ! Fd&ks(2idFr6C2{k > e5 

(c£J 9 , 0 GO*xflr) ref MPP/DSL/FT 

■ Responsible for rafionalisingdivisiona! financial policies, 
systems and procedures arid working with computer 
specialists in defining and implementing these systems. 

You should be a qualified accountant with 10-15 years' of 
broad business experience within a large organisation, 
using sophisticated computer accounting systems and 
control techniques. Alternatively an experienced 
management consultant could be suitable. 

Assisfeaf Fiaanrid CeefroSer 

Development Projects (cCis^O) refAFC/D'SL/FT 

This is concerned with the development, monitoring 
and financial analysis of development programmes and 
other capital expenditure. You should be a qualified 
accountant with 5-1 0 years’ relevant experience and/or 
a graduate with business school or economics 
qualifications with 'experience ideally in the control of 
large projects. 


manages equity interests in over sixty exploration licences 
and seven oil and gas fields under development or in 
production where other companies act as operator. 

A^ojd&cawnfsOHitrofe' 

toiDOO+tw) ref AAC/KWM/FT 

Responsible for managing our team of joint venture 
auditors and a small accounting group. You will also lead 
the development of computer-based financial database 
and accounting systems. You should be o qualified 
accountant with 10- 15 years’ audit and broad accounting 
experience probably gained with the larger professional 
firms, and with experience of financial systems. .. ’ . 

Assistant Hnaitdd CsofraBsr 

RKBdalEvBlwrtMBfcCB.DOO) ref AFC/KWM/FT . 

You will join a small team working on financial 
planning and the analysis of proposed new joint venture 
projects. You should be a qualified accountant and/or a 
graduate with business school or economics 
qualifications, with SI 0 years’ relevant experience. ? : 


We offer a very comprehensive salary and benefits package, which includes generous assistance 
with relocation arrangements where appropriate, outstanding pension and life assurance provisions and 
BUPAfacilities. * 5 

Please apply in writing for an application form, dearly stating the position in which you are 
interested and quoting the reference, to: The Divisional Personnel Officer, The British National Oil 
Corporation, 1 50 St. Vincent Street, Glasgow G2 5LJ- 

|BNOC| 

Financial control with 
Tfe British National Oil Cwponrtion 

All posts open to men and women. : 




r >j r'l 


■ A /adkin pic wish to recruit a Financial Director: The Group operates internation- . • 
1/1/ ally and is primarily engaged in the manufacturing and servicing of woodworking • 
• * machinery and machine tool equipment. Annual sales amin excess of £25m. The. 
appointment of a Financial Director at Group level is being made to provide additional.! J 
fin a n c i al expertise to assist the Group Board in planning for the future. The appointment ^ 
wiU be located in i^icestec. ... 

The Financial Director will report to the Chairman and be responsible for all financial 
and accounting matters, with special emphasis on.the co-ordination and interpretation 
of divisional management accounts and the further development of computer&gd maiF' 



Accountants 

OPPORTUNITIES IN THE OlLINDl&tBY 



ftsasswma wgh tulf career detsSsi&ttatB to; 






Patrofln* 
Petoflra House, 75-79 > 


LrapjrUVMDXf 

w (UK] Limited. ■: 
BYoifc flood, Londc 


LondtmSElTNt 


T 








37 


Financial Times Thursday June 10 1982 



imr. 


s film 




£ . ? ) 
i > * 




■ London 

£12000 - c.£15,000 
+car+benefiis 


Amajos international industrial and trading 
Group, turnover £2" bilBon plus, hag recently 
appointed a Group Audit Manager to set up a 
<fcpartment with a modem positive audit 
approach, woddnginhiaDyintheUKbutlatfir 
emending overseas. 

The’departmenftresponsihffity will incfade the 
monitoring of local auditors and the carrying out of 
oper a ti o nal control systems reviews. 
Thenew-pcsteibdude: 

—a senior positon for aqnaSfed accountant, 
preferably withindustdal or commercial 
experience and a sountDmowiedge of 

computerised systems - 
— further appointments forqnalified ■■ 

accountants, self-starters with at least two 
years' post qualitying experience. 

There are mmsially good prospects for career 
advancement 

Please utrile, quoting ref irmee 2690 IL, and 
enclosing curricuhon vti&c, toN. Halsey* 

165 Queen Victoria Street, Blackfriars, London, 
EC4V3FD. Replies will be forward cd to mtrclienf, 
and organizations in which you are not interested 
should be listed in a covering letter. . 


P 

1 Peat 


Peat, Manvick, Mitchell & Co. 
Executive Selection Division 


(MTIMI 


Ml IM 


SAUDI ARABIA 

CJE22,500 PAl, TAX 
FREE 


Advise Government Dept on 
budget preparation sbort/long 
term projects, cost control, 
financial fedsiWlity studies 
and auditing of invoices sub- 
mitted by contractors, 

Bachelor status, aged 35 phra. 
Candidates must be qualified 
to BA. Leave approx 2 months 
per annum plus 3 economy 
excursion flights UK Tele- 
phone Montin (UK) Ltd on 
0532-567141 for . application 

form only or mail detailed 
resume to Montin (UK) Ltd, 
Protection House, S3 Bradford 
Road. Pudsey, West Yorkshire 
LS2S 6AT. 


■ Finance Director 

Financial Success 
is more a question of skill 

to£L7K + Car then luck Nottmob 


Upto£L7E! + Car 

Through high investment we are 
maintaining our position within the 
accelerating evolution of the leisure 
industry. We are penetrating lucrative 
new markets, both at home and 
overseas, with the next generation of 
our technologically advanced gaming 

and amusement machines. 

We operate In a fast moving 
challenging market place. Our current 
turnover exceeds £15m and we are a 
subsidiary of Cope Allman International, 
a £2Q0rn industrial holding company. 

The man or woman we appoint to 
succeed our recently promoted Finance 
Director will have a solid industrial 


accounting and financial management 
background and will be responsible for 
all aspects of financial planning and 
control within the company, re porting to 
the Managing Director in particular; 
these duties will include the develop- 
ment and monitoring of budgets, 
effective cost control and ensuring the 


Bell-Fruit 


Nottingham 

linaftcfal viability of all commercial 
activities, especially in export markets. 

Professionally qualified, you will 
probably be aged 35-45 and will already 
have been responsible fertile financial 
management of a manufacturing 
company, ideally in the electrical or 
electro-mechanical sector. Energy, 
drive and effective presentation at 
Board level are essential qualities. 

We invite suitably qualified 
applicants to write, enclosing a full CV 
tor- David Garth, Group Management' 
Development Manager 
Cope Allman International PLC 
27 Hill Street, London W1 



UK & INTERNATIONAL APPOINTMENTS 


GROUP ACCOUNTANT 14,000 

An immaterial insurance company with its regional 
H.Q. in London offers a varied group accounting rote 
to!a wen qualified accountant aged around 30. Re- 
sponsible (or imprawig.fnaneial reporting systems you 
wiU either be at manager lord, within the profession or 
possess Ene experience of international branch 
accounting. C. LONDON JG/2368A. 

TAX PLUS . >£11300 

A substantial UK group offers a vaied and chaBwjging 
role to 3 young ACA As Deputy Group financial Con- 
troller you will be responsible principaiy for providing 
tax advice to minimise the Group's lability, hr addition 
you wfll advise oversees subsidiaries and assist in die 
preparation of group accounts. Although - not * 
spectator the successful esntidate wifl possess a . 
sound background in corporate tax - 7 

LONDON JGA088A 


TAX ADVISOR c£22300+Car 

. A major .UK international company with 
divert interests both in the UK and over- 
seas. with their attendant tax problems 
are seeking a hard-headed professional 
You are now a senior manager in a major 
practice or in industry seeking an en- 
vironment where you can contribute h 
the broader issues of. taxation with 
excetora promotional prospects. 

. C. LONDON RP/1 003B. 




TAXATION ACCOUNTANTto£1 5,000+Car 

Do you consider you have a led lor the comm&rdal 
approach to taxation combined with a high level of 
technical skills? With 3/4 years post quaSficaten 
experience either in the profession or industry you will 
receive substantial exposure to international tax and 
compliance in a broadly based UK company. ■» 

C. LONDON PG/1003A. 

TREASURER r c.£16,0OO+Car 

A highly successful international ' electronics company 
are seeldng a well qjalified treasury professional aged 
2B-32 to make a positive contribution to their con- 
tinued development. Excellent experience should have 
. been gained, in finandaVtax planning, cash- manage- 
ment. gnd credit control, together with staff super- 
visory experience in the treasury function. 

W. LONDON RP/1 001 B. 


LEE HOUSE LONDON WALL, EC2. 01-606 6771 ‘ 


Progress to Financial Executive in 18 months » - . 

CHIEF ACCOUNTANT 


Harley Street area 


£15,000^E18,000+car 


nnr riipnt fa a fa^grmringprrvaf a health cam gmnpjPwriedLyaleadiiTgBrifisihparyperty company. ItshcspitallntbeHarigy Street 
area provides spedabstmedical services of a very high standard. The hospital's reputation now extends throughout: the UK* Europe and 
Mirlrfia Pj^ ffiir th^i’maj nrhrw pttakrnTriridnn am pr w^riy i'trid^ry>rLqtTi»rfinn and winTBpraaOTfangrrifirsm^ fhis initial 

base. 

Tn aoooxmnodatotte fha grnnprawTwishes In appmnt a (thief Acmuntant. whose Teapo nal^HK flSVrill encompass 

■p^nrmmr& Yi»£* wtiri rjanA $tnpmrfoi\ nonlml-witham emphaiak m s y stems development. Success will lead to mijeasinq commercial 
jm7nTv amc»y,t m g prmp aHTy itws^ iwrtirailarl y the hnspjfpT rl^ftloprnF-ptprfigrarnrn^ andan apjv^hTirtnrfn«»*«OTitiw»pn<riHr>n in. 12-1B 
months. 

The su ocaasM appilkantwillprob^IrbeaCharteired Accountant (M/F% aged between 30 and 35, with sonnrifinimrifolmflnaggmenl 
experience andprofemotivatiaq, gained within a commercial environment. 

In thefhrffinnfaTM^ t^ write mnln »ring arLV.taP^C^rtmaMMJL^A.CLA.prKeaihEir MftlRR . 7 L.atonrLondcai 

address, quotingreference no. 3684. 




ACCOUNTING, FINANCIAL AND BANKING BH1 RECRUITMENT & SEARCH CONSULTANTS 


r c * h wu A'rt.rcuif.. xvr. 


410 Strand, London WC2R ONS. Tel: 01-836 9501 
26 West Nile Street, Glasgow G1 2PF. Tel: 041-226 3101 
3 Coates Place, Edinburgh EH3 7AA. Tel: 031-225 7744 


T -V i PfA 


Douglas Llombw. Associates limited 
Accountancy & Management 
Recruitment Consult ante 





c. £11,000+benefits 


Budget and Planning' function. RespbnsibiBties will include identification of specific 
management information needs of a designated area of the Bank; the role of- 
financial advisor bn business plans and new product development; review of 
performances against budget, and the'preparatiori of the annual budget and of 
strategic plans. ; 

The successful candidate, probably a part or fully qualified graduate 
accountant {ACA, ACMA, ACC A), will have at least two years’ experience in a 
commercial or industriaFenvironment We are looking for a mature, highly- ’ 
motivated individual who possesses the well-devetoped written and verbal 
communication skills this position requires. 

in addition to ’a competitive salary, fringe benefits include preferential mort- 
gage and personal loan facilities, non : contributory pension scheme and bonus 
scheme. ..-••• ; j.. .. 

Please-write with a comprehensive CV.to RosemarySwift, 

.The Chase .V-nTafian Bank N A, Woolgate House, Coleman 
Street. London ; *C2P 2HD. . 

The p*. ;. ; i ic . is Open to both men and women. 


FINANCIAL CONTROLLER 

We are a small dynamic and expanding pic with 
financial -and industrial interests who seek’ a quali- 
fied person ‘keen to make a positive contribution 
within a slim dedicated HQ team. 

Responsible to the Chairman and 'Chief Executive, 
the position calls for strong emphasis on finance/ 
management accounting, cash flow and controls; 
and will include secretarial matters. Business 
experience is essential. 

Applicants, ideally in their 30s, should be within 
| hour travel of West End. Remuneration 
negotiable. 

Apply with full details, in confidence, to 
Box A7S73, Financial Times 
10 Cannon Street , London EC4P 4BY 


Finance Director -Designate 

urrey c£ 2 Q 000 +(fareta. 


O ur client, a well known company engaged in. the marketing and sale of high 
quality cchsuznergoods, wfen to xecrafc a campefcearfcand energetic personiar 
this key position. ' ' 

The Finance Director - Designate will report to the. Managing: Director and wfll 
assume total jesp priab flx l y for all aspects of the financial and accounting . mat ters and 
the co-ordination of the company EDP devetopmentprogrHiame. 

The successful applicant, a Chartered AcarantantBkdty to be in his early to mid 30’s, 

. wnigt have gawrad anwrirf comprehensTve accounfang; training with: at 3 years 

experience at senior level within a total finance fondaoa, Candidates most have good 

j pialHriag nf Htwb, the whffffy to mntnmtw arid ron rirntmirari e* with tank and srrrt-TtmTfy A 

background in tite lingerie, jeweflesytttcpemifiiacsmdusto an. advantage. 

Zn addition to sateiy r ^ benefits wallindnde mi amraalbcmns based 4m profit, fully 
expensed quafity motor car; pension, scheme etc. It is anticipated that me desjgnato- 
petiodwffl irot bexaore than 12 months . . 

Caiididaf^irKJe& female, ^iouId r- __ • 


terhouse 


history ferm, qrrotirig reference MCS/7 075 
to Midi ad Knwles, Executive /- 

Selection Dmsicm,SoiithwaikTbw«n, 

32 Lond onBrid g e Stre et , London SE19S1E 


QUALIFIED ACCOUNTANTS 


CARIBBEAN c. £20^00 
This well-known firm of 
Chartered Accountants ur- 
gently require qualified Ac- 
countants to join their ex- 
panding audit team. Promo, 
cional prospects are good., 
and benefits for the success- 
ful applicants, preferably 
without children, will be 
generous, as will salaries 
which range up to 00,000 
(Ref: -19627) 


LONDON c. £14,000 
Recently qualified Chartered 
Accountants; preferably Uni- 
versity Graduates, are sought 
by this highly respected large 
firm, to join their Manage- 
ment* Consultancy division. 
Training will be provided 
both in London and at over- 
seas centres, through a 
formal development pro^ 
gramme. An excellent posi- 
tion for career advancement. 
(Ref: L1911) 


Consultative Committee of 
Accountancy Bodies 

Secretary 

Parliamentary & Law 

London Around£20,000 

The Technical Directorate of the Institute of Chartered Accountants 
in England and Wales wishes to fill one ofthe most senior positions 
amongst its 20 qualified staff. This vacancy arises as the result of a 
recent by-election. 

The successful candidate will head a small team, which includes legal 
and tax specialists, servicing both the Consultative Committee of 
Accountancy Bodies and the Institute. The work is mainly aimed at 
representing the profession's viewpoint on technical matters to 
Government and other organisations and at seeking to ensure that 
relevant legislation and regulations are practical and reasonable. In the 
last year, for example, some 1 30 submissions were made on a wide 
range of topics affecting the profession. 

The roie demands sound technical knowledge, cTarity of thought and 
presentation and the ability to manage people and projects against a 
background of tight deadlines, it will involve frequent contacts with 
senior civil servants. Members of Parliament', leading City institutions 
and other professions. Success in this environment will, therefore, 
provide scope for career development either in the institute itself* in . 
public practice or academic life. 

Applicants (male or female) must be professionally qualified, preferably 
graduates and aged early/mid 30’s. Experience in a major professional 
firm would be an advantage but breadth of experience and outlook are 
equally important Ref. 1 23S/F.T. 

Apply to R.P. Carpenter. FCA. FCMA, AC1S, 2-5 Old Bond Street; 

London W1X 3TB. Tel. 01 -493 0156. •• 


1 

rrwi 

1 

n 



-to £13,500 neg. ^mortgage facilffy - Herts. 

A well kpown Life Assurance Company with assets exceeding £600 million requires a 
senior qualified accountant, aged up to 45, to control the management systems function. 
Experience in the insurance industry is advantageous. . \ 

Benefits include generous- mortgage subsidy, non-contributory pension,- relocation 
exoenses. free lunches andflexFhours. ' - : • 


01-2583725 


Telephone 01-481 81T1 for an Initial, confidential discussion. 

4 • 

BANiawG&Aecoiwmivev' 

PERSONNEL SELECTION 

V OWXP J UqfeAnaaiHNN.tlb!diAMNi,[MiNEC>i:3f5.TEl£nCMslHflniL 


SUPERIOR @ML (U.KJ LTD 

Superior Oil (UK) Ltd„,a wholly owned subsidiary of The 
Superior Oil Company, .which is the largest independent oil 
company in the United .States, is expanding its Accounting 
Group in. London. A challenging position is now available for a 

SENIOR ACCOUNTANT 

Minimum 2-3 years experience with wide knowledge of com- 
puterised joint Venture Accounting Systems. 

Competitive salary arid generous benefits are available to the 
successful applicant, 

Career details should be forwarded to: 

Mr. G. P. Hfllier, Superior Oil (UK) Ltd, 

85 Buckingham Gate, London SW1E 6AS 


MANAGEMENT ACCOUNTANT 

CENTRAL LONDON 

This is an Jirtarestlng new position at senior level with one of Britain's 
loading publishing companies. The post calls for an enthusiastic recently 
qualified accountant looking to develop his/her career in a stimulating ' 
environment. . 

' The successful candidate will join a small- divisional finance team working 
dosdy with publishing and marketing mensgamant in the development of 
several key areas of (no company's business both at homo and overcast. 
He/she will bo expected to make a significant contribution to the develop- 



Selection Consultants 


Salary negotiable from £12,500 to £15,000 


responsibilities for appraising and. reporting on divisional performance. * 
An attractive salary package commensurate with experience will be 
provided. 

Beptifta should be forwarded with C.V. to: 

Box A78B1. Financial Times, 10, Cannon Street, London, EC4P 4BY 


A large City based International Group is 
seeking three qualified Accountants with a 
hig h degree of commercial . ilaiii to fill 
impending vacancies created by the promo- 
tion of personnel in the Finance Division.* 
Applicants for these positions roust be 
Chartered Accountants with big firm 
experience plus 2 years 1 post qualifying 
experience and/or appropriate commercial 
experience. Preference- will be given to 
graduates in the age range-26 to 30. They 


Austin 



must be prepared to undertake substantial 
overseas- tia ve L 

There are medium term prospects of 
promotion, to line appointments overseas. 

The remuneration package includes 
substantial benefits in addition to the basic 
salary. 

Please write with detailed curriculum* 
vitae to Confidential Reply Service, BSE 
8431, Austin Knight Limited, London, 
W1A IDS.' Applications arc forwarded to 
the client concerned, therefore com p anies 
. in which you are not interested should be 
listed in a covering letter to the 
Confidential Reply Supervisor I AlV I 











i ii k iWij 1 1 ! J|T|b (jTiyJ 


JOBS COLUMN 


What the Minister saw, and how to curb it 


BY MICHAEL DIXON 


BRITAIN'S OFFICIAL authority 
on coping with unemployment 
is. of course, the Manpower 
Services Commissi on. And 
Peter Morrison, Parliamentary 
Under Secretary for Employ- 
ment, now has first-hand know- 
ledge of how. behind the scenes, 
the commission itself is tackling 
the problem. 

On a recent Friday he went 
for talks with the top people 
of the commission in Sheffield 
where, as a result of the late 
Labour Government’s decision 
to give the provinces a stake in 
expanding bureaucracy, the 
MSC now has its headquarters. ■ 

While cmiy just over 1,000 of 
its total staff of nearly 25,000 
are in place there at present, 
the eventual headquarters com- 
plement will be some 1.500. 

Of these, only about one-third 
— mostly clerks, doormen and 
folk like that. I am told — will 
be recruited locally. But 
Sheffield has a severe shortage 
of jobs because, as the city's 
chief education officer put it in 
a letter to the Financial Times 
two days ago. “ the employment 
tide of the old industrial revo- 
lution is ebbing.” So every 
extra post provided by the com- 
mission’s going native is good 
news to the locality even 
though, in the light of Mr 
Morrison's experience, the same 
might perhaps not be said of 
the MSC's value to the general 
taxpayers who foot its bills. 

For it seems that when the 


meeting with the top people 
finished earlier than expected, 
towards four in the afternoon, 
the Minister brightly suggested 
that he go on walkabout to 
speak with the staff in the 
splendid new Moorfoot b uilding 
as they went about their work. 
The senior officials agreed 
albeit, some say, without much 
enthusiasm. The party there- 
upon toured the offices. 


There were desks, potted 
plants and other paraphernalia 
in plenty, I gather. But few 
if any .people were to be seen 
among them and Mr Morrison’s 
face, once he had made sure 
that his watch hadn’t stopped, 
was growing darker by the 
minute. Approaching the com- 
puter section, however, the 
party at last saw several people 
busily occupied. So the Minister 
stepped in to pay them his com- 
pliments. 

They turned out to be playing 
Space Invaders. 


Quango-control 


WHICH RAISES the important 
question of how better control 
can be established on the tax- 
payers’ behalf over the activi- 
ties of the Manpower Services 
Commission and other quasi- 
autouomous .non-governmental 
organisations. In theory the 
quangos are accountable to 
Parliament through Ministers, 
such as Peter Morrison, of the 
Department of State most re- 


lated (or should it be least 
unrelated?) to them. 

But as John Ashworth, vice- 
chancellor of Salford Univer- 
sity. pointed out recently, the 
House of Commons has had 
noticeably little success in sup- 
ervising the quangos’ various 
doings or in calling Ministers 
to account for diem. 

Nor can anyone sensibly ex- 
pect quangos to disappear, he 
told the Royal Society of Arts 
in London. “The most deter- 
mined attempts of the present 
Government "have so far led to 
the abolition of - less , than a 
third of such bodies, and even 
the Conservative Ministers 
have created new ones.” 

Since the lack of control 
therefore seems sure to remain 
a problem; Professor Ashworth 
said, Britain might do well to 
look for a solution to “that 
sadly underused Parliamentary 
resource, the House of Lords 

“It is rare to find in the 
CommoDS (and thus amongst 
Ministers) those who have a 
good first-hand knowledge of 
the managerial problems of 
large organisations. Life peers, 
by contrast., are drawn from 
such persons and it is just this 
experience and these skills 
which are needed for a body to 
supervise the administrative be- 
haviour of quangos.” 

Anyone doubting the peers* 
track record in such matters 
should consider not only their 
historic role in supervising the 
Church— which may have been 


the original quango— and the 
Law. but their modem task of 
keeping watch on Parliament’s 
behalf over the administrative 
activity of the European Econo- 
mic Commission 

Visits by teams of British 
peers had been observed to 
throw mpre of a. scare into the 
EEC Eurocracy than any other 
kind of governmental delega- 
• tion, and Dr Ashworth thought 
he understood why. When he 
was called before.a Lords select 
committee in his former capa- 
city of chief scientist to the 
Think Tank, he had felt more 
nervous than at any time since 
he was orally examined for his 
doctorate degree. 

I hope the Government will- 
give his idea a try. In terms of 
the public interest Barons 
versus Bureaucrats promises to 
be a more productive game than 
Space Invaders any day. 


Financially led 


A ! PECULIAR trait which, dis- 
tinguishes the publicly funded 
from the commercial kind of 
bureaorpracy is the former’s 
typical reaction when it sees 
unmistakeable signs that one of 
its operations is going wrong. 

The root of the problem, of 
course, is almost .-always some 
deficiency in an active function 
of management such as distri- 
bution. But the fact that the 
trouble is revealed by figures 
in the accounts tends to lead 
the official mind to the conclu- 
sion that it is an accountant 


problem, and so to call in 
accountants to solve; it 
As a ' result professional 
accountancy practices are 
regularly blessed by the public 
sector with what are essentially 
management consultancy assign- 
ments, which firms whose main 
specialisation is auditing are 
not always equipped to under- 
take. But not Wishing to seem 
ungrateful, even the profes- 
sional . practices lacking a 
management consultancy 
division of their own rarely re- 
ject the invitation. They pre- 
fer to take on such so-called 
financially led jobs in associa- 
tion with a management 
consultancy which has the 
necessary extra skills. 

• Hence the development of a 
joint interest between Inbucon 
and the chartered accountants 
Edward Moore who earlier this 
year linked with the UE.-based 
Fox concern to form an inter- 
national accountancy group 
with 725 partners in 210 offices 
throughout the world. 

This international extension ( 
is seen as a good opportunity to' 
build up the joint activity with 
the Inbucorl group, which was 
put on a formal footing by the 
establishment last year of the 
Edward Moore Inbucon- com- 
pany in which the accountancy 
partner bolds 51 per cent 
So through headhunter 
Reginald Welsh, who will give 
confidential treatment to any 
applicant who does not wish to 
be identified for the time being. 


the joint company is seeking a 
managing director designate. 
The idea is that the newcomer 

will develop, the business by 
winning an enlarged share of 
the market for financially led 
consultancy work, probably with 
the main although by ho means 
the whole emphasis on public-- 
sector organisations. - - 

Starting with up more than a 
secretary in full-time support, 
the recruit will be expected to 
build on the joint venture’s pre- 
sent and past assignments and 
connections with the aim of en- 
suring that wherever a finan- 
cially led assignment arises, 
Edward Moore Inbucon is asked 
to quote for.it . 

The prime need is knowledge 
of the managerial mysteries of 
public-sector bureaucracies, pre- 
ferably in several countries, 
gained cither as an insider or 
as a working consultant But the 
better a candidate also under- 
stands the private-enterprise 
market for financially centred 
consultancy, the more pleased 
Mr Welsh will Ibe. Another 
requirement is a recognised 
qualification, with chartered 
accountancy perhaps inevitably 
being ' accorded the most 
brownie points. 

No salary is quoted, but my 
estimate is at least. £25,000 plus 
bonus on results. Perks include 
•a car. 

Inquiries to Reginald Welsh, 
and Partners. 123-4 Newgate 
Street. London ECIA 7AA; tele- 
phone 01-600 8387. 


MANAGING DIRECTOR 


COMPUTER SERVICES / ? ; ! 

C J; Coleman Holdings Limited wishes to recruit a Managing 
Director for its computer se rvices.su bsldiary located. in Croydon* 
Surrey. . ■■ •. *. : c< .. - ' 

,The Company provides, batch and taclHtifis.ro clients on 

a fixed cost basis .under the registered- name “Timeslot,” and In 
addition, provides one;, of the - most efficient, and . reliable ;. data 
preparation services l/iythe South' East. It has been -in existence 
for just over two years and 'now requires a Managing Director 
re develop the Company and fulfil its aim of becoming a' leader 
in providing computer services to the- financial sector. . 

The position offered is fotended to be. a challenge -and the : 
successful applicant wilT have considerable knowledge and 
experience in the . computer service industry in. addition to 
management ability. ' 


Applications with a personal CV Shod 3d bo mode to: 
Mrs K. Reeve 

V Cj. COLEMAN HOLDINGS LIMITED. 
Porcsoken House 
l55Minories . ... 

London EC3N 1BT V 


'-'Ali Information will br treated as strictly confidential 


Well . capitalised : medium -sized .old' established . London 
member firm . would be'iuteresred ±a ..offering p^itiqns.-.Tu^ 
members with established . tidiness." Either individualsibr; 
teams would be welcome attractive terms to suitable people. 
All discussions would be treatetfinthe strictest confidence^ 


Please reply to.Jlox A7S79 ! ' ■. . .... .. • 
Financial Times, 10 Connote Street, London EC4P 4BY, - ' 


Oil Futures Executive 


City 


Our client is a leading international oil 
futures broker, supported by one of the 
world's major commodity trading houses. 


major oil consumers are also desirable. 
Evidence will be required of creativity 
and initiative. 


The company is seeking a senior • 
executive to play a key role in developing 
and promoting its activities in the London 
and North American oil futures markets. 
Responsibility will be to the Managing 
Director, but the position retains a high 
level of autonomy. 


A highly attractive remuneration 
package will- be-offered. 


Please reply in confidence giving 
concise career and personal details 
and quoting Ref. ER543/FT to 
J.J. Cutmore, Executive Selection. 


The candidate will have experience 


A of petroleum economics, operations and 
aA supply, and ideally marketing. Contacts 


AA supply, and ideally marketing. Contacts 
/liA with the international oil industry and 


Arthur Young McClelland Moores & Co., 
Management Consultants, 

Rolls House, 7 Rolls Buildings, 

Fetter Lane, London EC4A 1NH. . 


Arthur Young McClelland Moores & Co. 


A MEMBER OF AMSA IN EUROPE AND ARTHUR YOUNG INTERNATIONAL 


CJA 


RECRUITMENT CONSULTANTS 

35 IMew Broad Streetj London EC2IVI 1JMH 
Tel: QV58S 35SS or OT-5S3 3576 
Telex l\lo.SS737<a 


An important appointment with scope to achieve a position of influence— opportunity to become a Director of the . 

Management Company ui 3-5 years . . y. 


3E) INVESTMENT ANALYST 


LONDON 


£16,000— £25,000 + Car 


investment Trust group 

We invite applications from candidates aged 24-35. who have acquired a minimum of 4 years practical experience in investment 
analysis gained either in a Merchant Bank, stockbrokers or investment advisors. The successful candidate wilt- be engaged in the 
identification and analysis of investment opportunities with a particular emphasis on spetial situations both in the UK and - 
overseas. The ability to operate accurately under pressure, and to make a significant contribution through using financial flair in 
investigating entrepreneurial situations is important. Initial remuneration negotiable £16,000^25,000 plus car, noir-ccMtnbutory 
pension. free life assurance, free family B.U.P A., assistance with removal expenses '-if. necessary, Applications in. strict confidence 
under reference 1A 41 03/ FT, to the Managing Director-. . j..; . •* ‘ ‘ e - 




CAMPBELL-jOHNSON ASSOCIATES (MANAGEMENT RECRUITMENT CONSULTANTS) LIMITED . 
35 NEW BROAD STREET, LONDON EC2M 1NH. TELEPHONE? 01-588 3588 -or 01-588 3576. TELEX; 887374 


* Unless y ou are- applying for the above position.'please do not write to us. 


f Assistant Taxation 


Manager 

£ 11 , 840 - 04 . 800 * 


The Post Office is seeking an AssistantTaxation Managerto join rts Postal 
Finance Department based in Chesterfield, Derbyshire. The post which is 
open to both men and women, calls for a high standard of professional 
expertise and judgement. 

The successful candidate, who will report to the Taxation Manager, will be 
part of a small team responsible for, inter alia:- 

□ annual tax computations 

□ VAT returns 

□ interpretation of case law and legislation 

□ schedule E. 


Qualifications 

Candidates must possess thp expertise and the personal qualities 
necessary to advise general and financial managers on a wide range of 
taxation problems. They will have a detailed and up-to-date knowledge of 
taxation legislation and be ableto demonstrate the ability to negotiate with 
various UK tax authorities. The successful applicant will have had several 
years experience in the practical application of taxation iawto corporate 
businesses. Some travelling will be involved to other parts of the UK and 
abroad. 




The starting salary will be within the rangequoted. There is an excellent 
leave allowance and contributory pension scheme. 

Application forms can be obtained from Mrs. J. Sutton, PP7.2, Room 329, 
Post Office Headquarters, St Martins-Le-Grand, LONDON ECIA 1 HQ 
(tel: 01-432 4683). 

The closing date for applications is 9 July 1982. 

•New salary scales, with effect from 1 April 1982, are currently being 
negotiated. 


COMPANY 

SECRETARY/LAWYER 


* » • .... 


Yorkshire Television Limited wish to recruit an energetic solictor or 
barrister as Company Secretary designate 
. to take over from the present 
CompanySkretary when he retires in December 1982. 

The position carries full resporsibiiityforthecompany'sfegai 
and company secretarial affairs. 

Our business as a major television contractor 
offersan unusual opportunity for a lawyer aged over 30 
with wide general commercial experience. 

Personal qualities and managementskills of a high order 
will be required, as well as demonstrable experience in 
handling the legal affairs of a substantial • 
and lively business. 

Experience of pension fund and insurance administration 
would be an advantage. 

The post will be located in Leeds 
and will be fully pensionable. 

Applicants, male or female, should send personal particulars 
and curriculum vitae tor 
The Commercial Director 
Yorkshire Television Limited 
The Television Centre 
LEEDS LS31J5 



CrystalateHoIdingspjcIsalisted 
companywith a large number of share- 
holders, and the holding company for 
several subsidiaries operating in the 
telecommuniGationsandallied 
electronics industries. 


The presen tGrocrp Secretary is 
dueto retire in less than 3 years and we 
newseeka qualified secretaryto be 
based atthe Head Office in TUnbridge 1 
Wells who will then succeedhim. 


v 


In addition to the necessary 
formal qualification sand experi- 
enceofroutinestatutoiyajffiaiis 
the person appointed will have 


worked in a manufacturingorgarusation 
and will have had spedficexperience' 
ofpensionschemeadministiation. ' 

In addition to a salarynegotiable 
arountf£l2,500 the benefits package 
will include adisaetionaiyixxius, 
company carand other benefits to be 
expectedof a progressiveemplbyec 
Applicants are askedto write, 
with full details of career to date, to: 
Alex King, Group Personnel arid . 
Administration Manages 
Crystalate Holdings pl£ 

Union House, Eridge Road, 
TUnbridge Wells, Kent TN4 8HK 


YORKSHIRE 

TELEVISION 


illips & Drew 


Senior Banking Executives 


Standard Chartered Merchant Bank Limited, a wholly-owned subsidiary of 
Standard Chartered Bank PLC, Britain's biggest independent international 
Bank, has vacancies for Senior Executives in the Special Lending Depa rtment of 
its Banking Division. Extensive general banking and lending experience is 
required, together with the abfiity 1 to devise and develop innovative loan packages 
in sterling and in other currencies, and the associated legal aspects of such 
transactions. An ability to react positively within tight time constraints is 
essential, as is the confidence to negotiate at the highest levels. 1 

Candidates, preferably graduates, will probably be at least 35 years of age; 
those in receipt of salaries of less than £20,000 per annum are unlikely to have the 
seniority or experience necessary for these posts, la addition to a salary 
commensurate with the responsibilities involved in these key positions, 
substantial fringe benefits and career prospects are offered. 

Writtenapp lic a tkms with aiuflc umcuhim vitae should be semmcoafefencetD:- 
The Banking Director; ■ 

Standard Chartered Merchant Bank Limited, ^ 

33-36 Gracechurch Street, London EG3V QAX. / 

Standard Chartered Merchant B ank limited. ) 



Private Client Manager 


We have a vacancy for a person, probably aged 25-35, to manage 
private client portfolios. Applicants shtfuld have at least five years’ 
experience of fund management and of servicing a wide range of 
private clients. The ability to develop new business is important 
Remuneration will not be a problem for the successful candidate 


Please apply to: 


. Caroline Barrett, Phillips &Drew, 

Lee House, London Wall, London EC2Y 5AP 


CHARTERHOUSE 


APPOINTMENTS 01-481 3188 


Europe House'; World' Trade Centre, London EL 


COMMODITY 


MANAGEMENT 


Young experienced commodity .dealer or foreign 
exchange broker or banker required To head new 
commodity trading company -based in Winchester. 
Substantial opportunities for promotion within group. 
Write in first instance with, full background and 
experience to Box A7878, • Financial Times, TO,’ 
Cannon Street, London: EC4F 4BY. ' 


ACKW8RTH SCHOOL 

" Adcworth, Pontefract, ' 
West Yorkshire WF7 7LT 


ASSISTANT. BURSAR 


raqUimd far tfiis co-ed oeetioiial - 


bdflRfiftg school.- . Ea 
sttCBUMancy is 'needed 
t qualified Accountant, 
essential. 


initnee _of 
■ ^though' a 

•v-lr. .-not 


.Tho s.Wlrty to woric with jttdpis and 
ba abia to deal off odivsly «i* ths 
administrative -aspects of- eem- 
mon.iijr life is essential. • 


for '-farm of -application end- tiuibot 
particulars apply to tbs- Bursar. 












teste*® 


... -«t'H 5 ‘ . 

In*' - 


r* «• 

■ ' „ v- r 


AS? 5- " . , 



•JiKIi 


Merchant Banking 


| B»fiTnvl»% .TAT. c4 * 4 *"» I W«] 


requires an additional member for its small but active 
taxation department. 

The successful applicant will be part of a team which 
advises on the varied tax problems arising: from the full 
range of merchant banking activities. Duties will also 
include the computation of tax provisions and the agree- 
ment of tax liabilities with the Inland Revenue for a 
number of financial concerns within the Schroder Group 
of companies. — : 

The principal qualification required is sound knowledge 
and practical experience in the' field of qwporare taxation. 
Conditions and terms of employment are excellent. 
Applications, in strictest confidence, giving details of 
career and present employment should. be made in' 
writing toi' . 

- —Mr. joknR. Lambert, 

•- Head of Staff and Administration, . 

J. HENRY SCHRODER WAGG &CO. LIMITED, 

' 120 Cheapside , London EC2V6DS. 

SCHRODERS 


EXPORT FINANCE 


City 


c. £20,000* 


Major International Bank 


Our Client is a substantial international bank with a strong customer 
base in the UK and Europe. * 

Current development plans call for the recruitment of a trade" finance 
specialist with experience in all facets of export finance including 
E.C.G.D. to work closely with the bank's corporate marketing team. 

Ideal candidates, probably in their late 20's or early 30's, must possess 
several years' experience of international banking orfinance; personal 
qualities of self-motivation and maturity are considered equally 
essential. 

A highly attractive salary and traditional banking benefits will 
accompany this new managerial appointment which will. also allow 
for personal development within the bank. 

Contact Norman Philpot in confidence 
on 01-248 3812 


60 Cheapside ■ London EC2 -Telephone 61-248 3812:3/4/5 


CORPORATE INVESTIGATIONS 

FINANCE SPECIALIST 

c. £12,500 + benefits c. £20,000 + benefits 

A noted AcceptmgHonse is expandingits Corporate A major finance group is actively pursuing a progr am m e of 

Finance Division, and seeks two additional executives to expansion by acquisition. As a result They seek an additional 

direct growth in this area The nature of the work will be specialist to assist in the analysis, strategic pl anning and 

almost entirely non-routine and relate principally to investment review leading to the implementation of further 

mergers and acquisitions, therefore enabling a high degree corporate growth. 

of dient contact. This interesting position will therefore appeal to candidates 

Candidates, in the age range24-28 mlliokl either the ACA cither currently at manager level wiihin an investigations 

ora legal qualification, and have trained in a larg^ department of a major professional practice or with 2-3 

sophisricated environment. Esperience of relevant ' years experience of corporate finance within a financial 

investigations or other specialist exposure is seen as .institution. 

particolariyjnqxJrtant 

Interested applicants should phone either Roger Tipple or Nicholas Waterworth on 01-242 0965 or write to them at 

r- - 31 Sout hamp ton Row, London WCL 


r»ni 


, • Recruitment Consultants 

London Birmingham Manchester 


BRIGHTON POLYTECHNIC 
DEPARTMENT OF FINANCE 
AND ACCOUNTANCY 

LECTURER ll/SENIQR 
LECTURER IN ACC0DNTIN6 
& FINANCE 

Jo (enure on the BA (Hons) 
in Accounting and Finance, and 
other courses provided by the 
Department of Finance and 
Accountancy. ' Applicants should 
have a relevant degree, prefer- 
ably a professional qualification, 
and practical experience at an 
appropriate level. An interest in 
Financial Management and 
Investment would be an advan- 
tage. Recent experience in the 
use of computers, and some 
teaching or training experience 
(not necessarily full-time) 
would be helpful. Research and 
consultancy are encouraged. 
Salary: 

Lecturer 1 1 — £6.4«2-Cl 0.43 1 
Senior Lecturer— £9 ,624-£l2,Ki 
Further details and an applica- 
tion form may be obtained 
from the Deputy Head of 
Personnel, Brighton Poly- 
technic. Moulsecoomb, Brighton 
BN2 4AT. Tel: Brighton 693655, 
Ext- 2537. Closing date : two 
weeks after publication. 



Middlesex/Bucks, borders, c-£15,000 -f* car 

This is a key position with a major manufacturing company who export to most 
. 'countries in Ihe world. Reporting to the Financial Directprthe areas of 
responsibility will cover all aspects ofECGDwork, appraisal and - • 

administration of contract conditions, including financial terms, foreign 
currency management, order book administration and involvement in its 
interpretation into an activity plan. Applicants must have practical experience 
in all these areas, will probably be in their mid to late 30’s with a financial or 
legal background end qualifications. They must have the strength of 
* personality to h a n d l e sensitive situations and must be capable of taking 
decisions^ * 


. J.K Featherstone, Ref: 12244/FT, Male or female candidatesshould telephone 
in confidence for a Personal History Form 0532-448061, Minerva House, East 
Parade, LEEDS, LSI 5RX. 


Assistant to 




Finance Manaoer London 


This demanding and mgaosed position 
.wfthiri: the Sugar' Division of Booker 
Agriculture International would suit a 
young qualified accountant with ambitions 
to work in an international business 
environment and subsequently to take up 
expatriate em ployment. 

Based in London but spending around 
three months per year cm overseas assign- 
ments in the developing world, the suc- 
cessful candidate will support and often 
represent the Finance Manager. He/she 
wiH be responsible for monitoring and 
appraising all. finance, accounting and 
stores matters of those. clients whose 
operations, principally sugar estates, are 
managed by Booker Agriculture Inter- 
national. 

Th's wQI be achieved both by the review of 
budgets, accounts and reports-jn London - 
arid by regular visits to the projects over- 

BOOKER 
AGRICULTURE 
INTERN ATIONALl 


seas. Other tasks indude the preparation 
bfmvestigatii/’e reports on potential clients,, 
financial analyses for feasibility studies, 
and the raising of finance needed to imple- 
ment proposals contained in th e se studies. 
Aged 26+ and qualified, the successful 
candidate will have several years' relevant 
industrial experience, not necessarily 
overseas; a lively mind and a self-impelled 
determination to achieve results. He/she 
will be capable of progressing to a senior 
finance position overseas within several 
years and possibly longer-term. into, 
general management 
We offer a competitive salary and benefits 
package Including overseas travel 
al.Io^nces, 

pieaR write with brief personal detaHsto: ’ 
Peter Evans, Recruitment Manager. - 
Booker Agriculture 
International Ltd., 

Bloomsbury House, - 

77 GreatRussell Street, C 03 . 

; London WC1B3DB. IflT ' 


Actuarial 

Appointments 

Grown Life Assurance , Group 

Crown Life has a record ofvery rapid growth ■ 
within the United Kingdom since the establishment 
of autonomous companies in this country in 1978. 

Our product range is wide, including unit-linked 
individual life and pension products and a range of 
group pensions and other employee benefit services. 

' we have an expandings successful direct sales force 
and market effectively through professional 
insurance brokers. 




these and other areas Of the financial services •' 
market, not only in the United Kingdom but into ’ 
other European countries within the next few years. 
This expansion creates a number of opportunities 
for qualified actuaries who will welcome the 
challenge of our ambitious plans, and who wish to 
develop a career with u&. 

Opportunities therefore exist for actuaries and 
actuarial students to deal with all aspects of 
financial .planning and.control and the corporate 
actuarial work ofthe company. This relates to both 
individual life and group pension business. 
Applications are invited from those actuaries who. 
have completed the examinations within the last 
three years, and students who can show that they 
are making, and expect to continue tp make, 
progress thxougjh the Institute examinations. 

A substantial remuneration package is offered 
including a subsidised mortgage scheme. Please 
write in confidence with career details or Telephone 
for an application term to:- 
AL Christophers FIA, Director ofFinancej Crown 
life Assurance Groin), Crown Life House, Woking, 
Surrey GU21 1XW. Tel: Woking (04862) 5033. 



AMEUIER&llIBBHTSifDSlJMNQLASSOCIKnQN 



TOP PERSON 
OPPORTUNITY 

If you are or have recently been a Director or Senior 
Executive with a proven .history of -success, in Tour own 
field, we believe this success can be of advantage to you in 
this the Tyndall Organisation. See our advertisement in 
today's paper. If you would like to find out bow . we can 
help yon towards a new career- opportunity telephone: 
London — 01-828 4277 

Bristol -r- <0272) 277616 

Manchester — - (061) 928 8213 . 


Public Relations 
ACCOUNT DIRECTOR 

A nnw and expanding public rela- 
tions and . advertising agency 
require -on Account - Director with 
experience In the field of financial 
public relations. Salaiy and benefits 
negotiable. 

Please apply In writing tncloeing- 
a c.v. to: , ' _ . ^ 

B/Scbml Forsyth Associates Ltd. . 
3-4 St Andrews HOI 
London EG4V BBT 


Credit 

Analyst 

Standard Chartered Merchant Bank Limited, a 
wholly-owned subsidiary of S tandar d Chartered Bank 
PLC ? Britain’s biggest independent international Bank, 
has a.vacahcy for a Credit Analyst who will be required 
to evaluate and advise on new facilities, review existing 
commitments, and undertake related research. 

• Can d i d ates; preferably graduates who have enjoyed 
formal training in credit analysis techniques in a major 
intematkaial hank and who havehad subsequent 
experience, w31 be required to work on their own 
initiative and to present dear verbal aid written reports 

to senio r manayinmi t. 

An attractive salary, substantial hinge benefits and 
good career prospects are offered. 

Written ap plicatio ns with a full curriculum vitae 
should besent in confidence to> 

The Personnel Manager, ’ 

Standard Chartered Merchant Bank Limited, 

1 33-36 GhabecfrurcK Street, ‘ ( 

London EC3V0AX. - j 

Standard Chartered Merchant Bank Limited 


P.E.R.A. 

Director Industrial Services 

This major Division of tie Proctactwm Engin e e rin g Research. 
Association provides a ■wide range of consultancy and industrial and 
technical services to companies in the prime and public sedans. 
The Division, a principal fee earner of the Association, is of prime 
significance to its commercial success, 

• a successor is required to the present Director 'who-retices next 
spring. Responsibility is to the Director-General for the overall 


or man? 


operating departments and over 100 stafE 

• ESSENTIAL requirements are proven managerial and administrative 
ability coupled with, commercial acumen, and backed by an honours 
degree or equivalent professional qualification. 

* age preferably not over fifty Remuneration for discussion around 
£20,000 plus car 

Write in complete confidence 

.to G.TJE Elms as adviser to the Association. 

TYZACK & PARTNERS LTD 


MANAGEMENT CONSULTANTS 


IO HAT.TAM STREET 


LONDON WIN 6DJ 


Finance Director 

London : c. £25,000 plus car 

This is a key appointment to a major division of a UK public company in 
the distributive industry. 

As a senior member of the divisional management team the main 
functions of the Finance Director will be to agree divisional objectives, 
to monitor and forecast profit performance and to determine the 
strategies and actions required for improvement. The successful 
candidate will also be responsible for the management and control of all 
accounting activities within the division. 

Candidates should be qualified accountants in their early 30’s, possibly 
with an MBA, who must be profit-orientated, ambitious and have the 
drive and energy to lead and motivate senior management. Large 
company experience is essential; preferably in distribution or a fast 
moving consumer goods environment. 

Attractive benefits include quality car, substantial profit-related bonus, 
health insurance and, where appropriate, relocation expenses. 
Excellent career opportunities exist wiihin this expanding company. 

Please, write - in confidence - stating how the requirements are met to 
Lionel Koppen, ref. B.42124. 

This JppiaUmauuopatomeaendxcoatta. 

United Kingdom Australasia Benelux 
Canada France Germany Ireland 
Italy Scandinavia South Africa 
Switzerland USA 

Management Selection Limited 
International Management Consultants 
52 Grosvenor Gardens London SW1 W OAW - 


INTERBANK EUROCURRENCY DEPOSIT 

LINK PERSON 

CHARLES FULTON (LUXEMBOURG) SA. 

are looking for a capable person, preferred age 20-25, to work in their 
Luxembourg office. Ideally, he/she will have had money broking 
and/or linking experience. A working knowledge of French/German 
would also be an advantage. 

The successful applicant will initially be employed for a 6 month trial 
period. Relocation assistance will be given where required. 






Please apply in writing to: 

Mr T. A. Jones, Personnel Manager, 
Charles Fulton (Brokers) Ltd, 

3040 Ludgate Hill, 

London EC4M 7JT 


INVESTMENT FUND MANAGER 

c. £12,000 

A leading Merchant Bank.is seeking an experienced investment manager 
to join its expanding Pension Fund department. The successful candidate 
will be a graduate, aged between 26/32 with at least two yearsexperience 
of fund management. 

The usual banking fringe benefits will apply. 

P/ease contact Peter Latham • 

CREDIT/LOANS REVIEW 

c. £11,000 

Experience for this interesting job should essentially be a combination 
of loans administration and credit analysis. Responsibilities will be to 
control and monitor the progress of all new and existing loans, conduct 
annual reviews, and deal with other banks and solicitors. Age 26-36. 

Please contact: David Little 

CORPORATE FINANCE EXECUTIVE 

Our client, a leading Accepting House, wishes to recruit an additional 
executive. Applicants shauld.be aged between 26/30, have a good 
degree and hold a professional qualification (Chartered Accountant or 
Lawyer). Some experience of corporate finance work would be. an 
advantage. 

An attractive remuneration package will he offered. 

Please contact Peter Latham 


xmothon 


BANK RECRUITMENT CONSUL TANTS 


170 Bishopsgate- London EC2M4LX. ■ 01 623 1266 










40 


! Financial Times : 'Mir^day_ Jafe ; 1$82 


2V 





Hew Business Executives 

kidusf rial Hire Purchase Limhed 

Grindlays Bank p.l.& will shortly, through its asset-based finance subsidiary, be 
expanding its hire purchase finance activities in both the South and North West of 
England and will require additional New Business Managers to operate out of their 
London and Manchester offices.' 

The company provides financing mainly for capital intensive projects such, as plant 
and machinery, commercial vehicles and car fleets and the. Executives will have 
profit-centre responsibilities for the estabiishmentand development of non-con stirner 
hire purchase business. 

The applicants, aged 28 to 38, should therefore have a wide range of existing industrial 
contacts at senior level, be self-starters and have highly successful careers to date in 
a new business capacity with a national finance house. 

A five-figure salary is offered, together with a company car, and other benefits 
including a subsidised - mortgage scheme, membership of B.UJIA. and a non- 
conrributory pension scheme. 

Please send details of age, education, past experience and present salary to Atari 
Marvin. Grindlays Bank p.I.c., 13 St James's Square, London SW1. 

This appointment is open to men and women. 

Grindlays 

Bank 

P-I-C-^^bh^hhh 


EQUDLEASE 
INTERNATIONAL 
CORPOR ATIOI 7 

EUROPEAN CONTRACTS 
ADMINISTRATOR 


KNIGHTSBR1DGE BASED INTERNATIONAL 
LEASING COMPANY has a vacancy for a 
CONTRACTS ADMINISTRATOR to work in the 
EUROPEAN HEAD OFFICE 

The position will involve close liason with the 
MARKETING, FINANCE AND LEGAL DEPART- 
MENTS of the company: preparation of manage- 
ment statistics, reports and reviews: world-wide 
client contact and general business support for 
the company. 

CANDIDATES will ideally be aged between 22 
and 30. preferably with a degree or similar 
qualification. Previous experience in a similar 
role would be an advantage. 

Salary is negotiable but would be commensurate 
with experience. 


Written applications with full CV should be 
addressed to MR PAUL JORDAN, DIRECTOR 
NORTHERN EUROPE, Equilease International 
Corporation, Bowater House East Wing, 6S 
Knightsbridge, London SW1X 7LR. 


Investment 

Manager 

We are a firm of specialist investment managers for pension 
funds, who aim to provide clients with a personal service and 
top quartile performance. 

To consolidate our position, we seek a young ambitious 
graduate, under 3Ch with at least two years experience of equity 
markets, to whom the scope for initiative and responsibility 
appeals. 

Ifyou would like to work in an organisation where the sole 
criteria is getting the investment problem right in a small 
company atmosphere free of bureaucratic controls, this may be 
the opportunity you have been waiting for. 

Salary and profitsharing bonus will reflect your abilities. 
Fringe benefits include a good pension scheme and BUPA. 

P lease reply in confidence with curriculum vitae to 
Norman Pilkington, Deputy Chairman. 


GMP 







8v Partners Limited 


is jchn Street. London WON 2EB 

■Tetepb'o'rie 01-405 415 > % 


J. M. FINN & CO. 

Members of the Stock Exchange 

INVESTMENT ANALYST 

We wish mo recruit an Investment Analyst to maintain and 
develop existing industrial cootacta in conjunction with 
some of our research orientated partners. We are looking 
for an experienced person wbo is perhaps currently with a 
larger organisation where advancement and personal 
expression may be lirmled. We place great emphasis on the 
ability to look at situations in a cwmnerrial way and to 
express opinions consistently both within the firm and 
cterectly to its clients. Applicants should be looking to make 
a career where partnership is open to those with initiative 
and ability. 

Write In strictest confidence to: 

Geoffrey Yeatts 
J. BL Finn and Co 
Salisbury House 
London Wall 
London EC2M 5TA 


MERCHANT RANKINS EXECUTIVES 

FINANCIAL GROUP providing a comprehensrva range of financial . services 
is planning to increase the executive team in corporate lea tiding end 
corporate advisory cervices. 

APPLICANTS should have relevant qualifications and experience end reside 
in the Manchester or Cheshire areas. Successful candidates will hive a 
financial background, be able to camaunicatB aHectrveJy and be self- 
motivated within the context at the teem. 

REMUNERATION win bo commensurate witK experience^ 

Applicants should give persona! resume and Indicate m*** expe c tation* 
and objectives^ 

to tfm first instance please wiMjeg 
COMPANY SECRETARY 

E. T. TniBi Limited. Bank House. Handforth". Cfienmd, SK9 


BanfcRecnutmeM 

■H FUND MANAGER . ' c£2U,6ooi 

Senior appointment viih a leading ndemational me- ■ 
Ki . bank, requiring ettcitsivce ipcricacc is the manasp- 1 j 
nrem of Fitctllseotoe ntnioconeacy foods. UhrsusMBfiii 
ctmdidetc srifl loin an established proCessaaal inMsuieiic ; 


F/X DEALER 

-Appointment' with an ecthc. expandi 
ample scope to an experienced, tcts 
F/X. Dealer aged in his ot herald 20s. 


C. £11,000 
J).T, bAmag 

and rmhitlwlt 


CHARTERED ACCOUNTANT to £11^)00 

An .ambitious Chattered Accountant aged -up toZ7.it 
sought by a leading international merchant bank in 
fill a higB-especure role, 'initially in the field of Hr" 1 
Office reporting. Some hanking experience is e»mVl 
tthis may have been mined on bank audits), as is 
axity with oomputeraed systems. Future pr ospects are ' 
iwninrtirjy attractive. 


LQAN5.0FFICES * to £12,000 

Ptun u Ine pt T iioU t ent bank seeks an additional Executive 
to take mpouBbOfty for tort of lit. tout portfolio^ 
■including sysdioiloizs. The ideal oreilrhrtr woski be a 
graduate aged 2 LJ 0 wsh a hamrmy IwrVgTmwMrtw ^If, 
including country and c or porate risk analysis, loan 
pricing and dnann c ntn iioa- " 

LEGAL EXECUTIVE ■ - to £15,000 

A progressive appointment. caJEx® farerpcrience in the 
preparation rf Joan, and Guarantee domraewnLioa 
(both, syndnted and mm -syndicated), gained with a 
firm ofsofiduraora bank. Aged preferred; 26-32. •• 

GRADUATES to £7^5000 

A limited number of opening -are snikUe in the- 
investment trading area for highoCbregmdiiatesf2i-24). 
Candidates must bold a. gp od de pSee fit a relevant dis- 
cipline. and demonstrate ooeptionaL.pmaanal qgaliaa 
oi ambition and tenacity. 


Please telephone Ken Anderson -or LesEe Scares, 01-348 7421 erOt-248 8876 


Anderson, Squires, Bonk Recruitment Specialists 
Regina House, 1-5 Queen Sheet, London EC4N 117 


AndersoriySquires 


i 


STERUNG MONEY MANAGER 

required by MeU-enabllihid LOTI 
in the City to run and develop its 
expanding book. The successful 
candidate will enjoy the responsi- 
bility of running his/her own 
department end liaising with a 
small team. Salary negotiable, to 
match responsibility, and experi- 
ence. 

Write Box A7882, Financial Tones 
10 Cannon Street. London, EC4P 4BY- 




Scope to become director of this subsidiary Company in 12-18 months. 

MANAGER- INTERNATIONAL LEASING 

LONDON £13,000 . £20,000 


MAJOR MERCHANT BANK 


r iTTTT 


Stores, Chemicals 


A major firm of London institutional stockbrokers is 
seeking to expand its research expertise. 

In particular a senior analyst with an established 
record is sought for the consumer sector and also an 
analyst to join the chemicals/pharmaceuticals team: 
Applicants for the senior analyst position should be 
in their late 20’s or early 30’s with considerable 
experience either in stockbroking or with an 
investing institution. 

Applicants for the chemicals analysts position 
could be slightly younger and with rather less 
experience. 

High salaries plus bonus and normal benefits are 
offered. 

Applications should be sent toe 

Box A787 6, Financial Times, 

10 Cannon Street; London EC4P4BY. 


Customer Dealer- 

CITY 

The London Branch of this major European 
Bank requires a Customer Dealer to join its 
Dealing Room team. 

The ideal applicant will be between 25 and 
30 years of age and have sound experience of 
Foreign Exchange, Deposit and Customer 
Dealing. 

In addition to an excellent starting salary, which 
is negotiable, first class fringe benefits are- 
available as one would expect from a leading 
European Bank. 

Applications (in strict confidence) may be made 
by telephoning Mr. Suer or Mr. Todd on 
01-638 2700, or write to:— Mr. J. S. Parker, 
Personnel Officer, Amsterdam-Rotterdam Bank 
. N.V., 1 01 Moorgate, London EC2M 6SB. 

amrobaM 


Applications are invited from candidates aged 25-30, with substantial equipment leasing experience, 
ca join a specialist team, in structuring, arranging- and managing high value leases. Experience must 
include large ticket leases arid preferably cross-border transactions. Initial - salary . negotiable 
£1 3,000-£2Q,000 plus pension, free life assurance, free family medical, cover, subsidised mortgage. 
Applications under reference MIL 14183/FT should be accompanied by a detailed CV specifying 
experience and achievements. Thriy will be forwarded unopened and in strict confidence to our 
Client, unless you list companies to which they should -not be sene in a covering- letter marked 
for the attention of the Security Managers - . . . 

CAMPBELL-JOHNSTON RECRUITMENT ADVERTISING LIMITED, 

35, NEW BROAD STREET, LONDON EC2M INK. 


* .Unless you are applying for the' above position, please do not write to us. 


FINANCIAL FUTURES 

Account Executive s . 

c £25,000 + bonus + ear + benefits 

London-based . Brokerage/LlFFt Member with substantial business 
from Money- and Stock Markets, currently seeks an experienced 
Oeaier to act as an Account Executive in Financial Futures. The- 
eppointec, will have substantial knowledge of one of the following 
arses: Foreign Exchange Dealing; LT.S. Bank FX Advice: Eurobond 
of CD Seles. Ho/she -will be both a technician and a proficient 
marketer and will perform a Brokerage Service' to institutional 
.clients orr the London, Chicago and Far East Financial Futures 
Markets. 

Llffe Pit Brokfer . 

c. £16,000 + bonus + car 4- benefits ' 

Money Broking House/LIFFE Member requires an experienced Soft 
Commodity or LME Floor Trader to Pit broke on the forthcoming 
London International Financial Futures Exchange. Applicants should 
express a willingness to grasp the complexities of the Cash 
Markets. . 


TRADITION (F0REX1N) LTD. 

Doe to our current expansion we .are seeking senior -and 
experienced Brokers in tibe Sterling. Swiss Franc and 
Deutsche Mark Spot and Forward Markets, 

Applications should be made either in writing tot 
TRADITION (FOREX3N) LTD 
Staple HaH, Stonebouse Court, 89/90 Hoandsditeb EC3 7 AX 
©r by telephone; 01-283 7971 


ANALYST 

ELECTRONICS/DEFENCE 

Stockbroking firm with existing business in this 
area wants to appoint an Analyst to generate 
and communicate ideas. The ideal candidate has 
an MBA, Accountancy, or similar qualifications, 
and two or more years experience. 

Please write Box A7883. Financial Times 
10 Camion Street, London. EC4P 4BY 


mw APFommsms 

£U0OO-SOuOQOpa. 

©» ft-* flif "* — KyjAftily OnBp^ttiiflatRaBonHddd 
CbripapBfcecanfflBriM ■ — mi i nt w n^ 

Commit 

73 Grcsvenor Sprat, DadcaiWI <0493850$ 


Operations Executive 

c £HOO 0 +- benefits - ■ • 

American Futures Brokerage." with strong institutional diem base, 
seeks sn Operations Executive for their London office. Applicants 
should be experienced in ICCH clearing procedures aofl in Margin* 
Control. 


lit addition to the appointments, we have a variety of positrons 
with mgjor Brokerages, offering realistic career opportunities.- AW 
enquiries will tie treated with discretion. 


Please telephone Robert Kimball, 
in complete confidence, to discuss 
.these positions in more detail. ; 





CHARTERHOUSE 11 
APPOINTMENTS 01-481 3188 

V- . ..Eurrip^igir^- World Trade Cejgifc. hirpdo/i -^1 


( 3 ) CLOSE BROTHERS 

seek SL 

LENDING BANKER 

• 9 . 

directo r material, with .professional training and banking 
experience, to augment their small and successful team. 
The likely candidate, aged tote 20’s/30’s, will be a self- 
starter, relish front-line client contact, ami can expect to be 
: prpperiyjjaad. 

PSease write to Mr. R. D. Kent. BSanaging Director. Close 
Brothers limited, 36 Great St. Helen's, London EC3 6AP. 


ENGINEERING ANALYST 

LONDON 

A reading firm of Stockbrokers wishes to appoint an additional 
Engineering Analyst within its Research Department. Applicants 
should have a minimum of two years research or fund manage- 
ment experience and possess the skills necessary to communicate - 
effectively with Industry and major investment institutions^ 
Preferred age range 25-30 years. The remuneration offered wilt 
reflect the qualifications.-, and experience of the successful . 
applicant; 

Please wrfte Box A7884, Financial Times 
10 Cannon Street, London EC4P 4B Y 


STOCKBROKERS 

A' financially strong’ and •prograsaiy* medium sized firm of Lomhuf 
• StDCkbrokare, with pteeBonr.cnaMs in the City can airrenUy accom- 
modets ■ small number of eosowewd members Good I quality busmus 
essential, plus rte ability »: fit easily into end benefit from a happy 
but professional enWronmapt^- 

■ Wfhe fn striciest cooSiltnci! lor 

Box A7B80. Financial Time*.' 10. Cannon Street, London, “EC4P 4BY 




03? 


w 

Wl 



p|i 

mm 

m 

ESS 

Wiw to 





oiy 

sional fittn. • * 

^jplicants should 'wnte^ endoshig a 
cumculumvitae,ib: ! ' ' ^ 

The Steffi}^ ■ 

EO.Bdxi88 :-:S ^ 

15/l&Gracedimch^trciei : 
LohdonHCS 


W BARCLAYS 



■: : manager - ■ 

Salary in range £1 2,000pa to £1 3,000pa 



The Welsh Devetopntom Agency through ftsindusliyand 
Investment Division is responsible far investing funds in . 

businesses in Wales, by way of equity oi" bans. A new company 
has been formed to invest risk capital in companies with growth 
potential. Itis envisaged that many of these oompari'es will be in 
high technology. 

Reporting to the Investment Director the Venture Fund Managin' 
will cany out investigafion, analysis and devetopmentof funding 
packages. The work will include seeking out companies orprojects 
and carrying out the necessary background Investigations into 
product viability. 

It is envisaged that the successful applicant wffl have had 
experience ofmarc^jement ofmeitBurn sizal companies wffii good 
growth recordsman urtoerstanding of cuirentdev^ipmeiits in . 
- areas of high tedmology-and po^toly, but not necessarily, a . 
quafification in Accountancy. : " 

A car aRowance is paid and the post carries s%weeks ieavb per ■ 
year. •• - . • ' . 

Generous assistance will tie given with relocation expe nses . ^ 
Application forms to be returned by 12.00 noon 18 June 1982 aro 
obtainable from:- Personnel Department, WefehOevetopment.. ' 
Agency. Treforest Industrial Estate, Ftontypridd, Mid (3»no^an ‘ 
CF37 5UT: Telephone: Treforest (0d4 385) 3571 . 


INSTITUTIONAL 

SALESMAN 


for Stockbrokers 

A vacancy has occurred in oar London Office for an fnsticudonat 
Salesman (H/F) to join an established and successful organisa* 
tion. Research back-up provided, but applicants shouli ideally 
have previous professional experience in institutional selling or 
fundamental analysis. Salary* negotiable according- to experience--:. 

SMHTH KSN CUTLBt , 

52 Corehro, EC3 SMITH KEEN CUTLER 


TRUST MANAGER REQUIRED 

: ’ ’ -fiir . . 

HOLBORN SOLICITORS 

JftLsrt*. .wS"SLSroS5!: 

Prav roua ttj uri expirSnca not mxrmlal. Thi*1« » 

^srA^esss^^gsaar “■* 

Apply with full curriculum vitam tor ' . - • r ■ ■ 

Tha Partnership Secretary 
KYNOLDS PORTER CHAMBERLAIBI 

Chichester House _ . . _ 5 . .... 

278/282 High Holfaom ' I- ! 

London WC1V 7HA .... ; 


V 












£325 






? -Mod* 
ice. The 
14, haverdev* 
5 2nd navehajj 

ikingapai* 

n. a majorpn^ 

ite, endoangi 

actor 

S3 

ch Street 

03 


EDUCATIONAL 


5F/7/7Z 


WANTED 

INDUSTRIAL ENGINEERS 

HEAVY- MECHANICAL-' COMPLEX,. . TAXILA, a : 
leading public sector organisation in Pakistan, ; 
engaged in the manufacture, supply and engin- 
eering of cement plants, - sugar plants, ' road 
building and construction machinery, boilers add. 
pressure vessefe, electric- overhead traveliing 
cranes and mobile cranes, railway equipment and a 
variety .of heavy engineering products and capital 
goods, needs .Industrial Engineers, who should be 
well versed. in production planning , material 1 
planning, process planning,. production scheduling 
and control, computer programming and monitor- 
ing of large projects/plants, etc. 

Pakistani engineers with post-graduate qualifica- 
tions in industrial engineering having requisite 
experience of not less than seven years in similar': 
heavy engineering industry should apply imme- 
diately, with their bunlaia and photographs to the 
following address: 

The Chairman 

STATE ENGINEERING CORPORATION ’ 

' 10th floor, PNSC Building 
Moulvi Tamizuddin Khan Road 
Karachi (Pakistan) . 

Persons selected would be considered for middle 
and senior management positions.. The posts : 
offer, attractive prospects.. 


SOUTH AFRICA- INSURANCE INDUSTRY 

* Actuarial Staff * Pensions & Life Administrators 

* Fire, Accident, Claims and other Technical Staff 


Federated Insurance Group with head office in Johannesburg 
. is a member of Ac Iorg marinnfll Network of Jnsnnmcc and is 
one of South Africa’s fastest growing insurana groups wirh 
an enviable repmation anda prcmdrecord of srability.Rankcd 
by assets, this composite company, is the seventh largest 
Short-Term and the eighth hugest life insurer in South 
- Africa — assets exceed R500 million— in 1981 R375 million. 

Expected growth rate and expansion policies require them 
to xind ambitious people of sound background in the in- 
surance industry preferably with CQ qualification to join 
their Fire and Accident Underwriting, Qahns and other 
technical teams. Far their long term operations they require 
Actuarial staff at all stages of qualification of the-Acniarial 
'damnations and they have vacancies far experienced staff 
and trainees at senior and* junior levels in Pension and life 
administration There are aJ so vacancies atscniorandmiddle 
management level for qualified Accountants, CA, CIS or 


other suitable qualification and preferably., with a back- 
ground in the Insurance industry. 

in feet, if yon have experience inthe Insurance industry and 
youxvish to take die opportunity fin: further career develop-, 
meat we would like to hear from yon. The Group will 
provide opportunities for advancement and negotiate 
competitive salaries as wdl as a wide range of fringe benefits 
including annual, bonus and low interest housing loans. 
Special arrangements will be made for relocation expenses 
for successful candidates and their families and free 
accommodation will- be given on arrival in South Africa for 
up to one month whilst looking for more permanent 
acco mm odation. 

Please telephone (01-629 1844 at any time) or write - in 
confidence — for further information and an application 
form. M. Hordern ief.JB.4Ul. Interviews.will be conducted 
in the UK from end June to eariy July. 



United Kingdom Australasia Benelux 
Canada France Germany Ireland 
Italy- Scandinavia South Africa 
Switzerland U.SA- 


Management Selection Limited 
international Management Consultants’ 
17 Stratton Street London W1X 6DB 


'An 

Inferncrtional 

Career 

YourSon 
Or Daughter 


At the European Business School, your son or daughter will spond 
feuryears working , and studying tnlondon. Paris and Frankfort. Um 
I ntensive undergraduate course combines business management, 
French and German, with training periods in European companies. 
1000 graduates are now working in thirty countries worldwide. 

For information about the school, including details of lees and 
admission requirements, contact 

■M Mrs Terry Davies. School Secretary, 

t m ^ SS, Lionel Denny House. 

/£J I LT 23 Gasuetl Road. London £ClM 7 BB. 
LJJA Tdephone: 01-251 4385. 

UOhEX^I - BARS - FRANKFURT 

EUROPEAN BUSINESS SCHOOL 



Hie Hongkong Bank Gnrap 
International fjnrimrate 
Accounts Division Frankfurt 

. The. Hongkong Bank Group, which includes. 
Hie Hongkong and Shanghai Banking Corpor- 
ation, Marine Midland Bank, The British Bank 
of the Middle East, Hang Seng Bank I.id., 
Wardley LtcL, Antony Gibbs &. Sons Ltd. add 
Mercantile Bank Ltd, requites a Scandinavian 
.executive to join their International Corporate 
Accounts Division. Continental European Rep- 
resentative Office, based in Fmnkftirt 

The preferred candidate (of either sex) win be 
aged from 25-35, and have enjoyed a wide range 
of executive experience in commercial and/dr 
merchant banking, and be keen to Work with 
one of the largest, fastest- growing, and most 
diversified banking groups in the world. He or*, 
she will speak fluently English. German and a 
Srnnrfiw avian f»rtffiage..Thft- position wjUt in- 
volve a good deal of travelling wftbnnTiurope, 
and require the abHily to ro^rkei The HOQgkang 
Bank GToap^ ehlire range of services, co-ordi- 


nate business opportunities between various 
members of the Group, and innovate solutions 
to clients' ’jjroblems.TTie executive will be based 
in Frankfurt: and operate throughout Europe, 
but with particular emphasis on marketing 
to, and assisting; Scandinavian multi-national 
^companies. .. 

The candidate selected must expect to be as- 
signed to Hang Kong for 4-6 months initial 
.training, during which he or she will also visit 
various other countries in order to observe the 
Group’s operations. 

The' salary package, which is negotiable, will 
be commensurate with qualifications, age and 
previous experience. . .. 

Applications, with full curriculum vitae; recent 
photograph, address, and telephone number 
should be submitted to: • 

The Senior Representative 
TheHongkoogBankGroup . 

International Corporate 

Accounts Division - • . 

Bockenheimer Landstt51-53 " Tyin - 
6000 Frankfurt/Ml i- 1UC 

West Germany Un'nnlznVirT 


^ The 
Hongkong Bank 
Group 


ACCOUNTANT 

BELGIUM 

SALARY: £15,000-£20,000 

Air Accountant is : required to be resident in . South-East Belgium, to be- 
responsible for the financial and management accounts of two subsidiaries 
of a UK based public company: one of the subsidiaries is in Holland and the 
other in Belgium. The two subsidiaries between them employ about 110 
people and together have an annual turnover of approximately £3m. The 
successful applicant will have a recognised accounting qualification, with a 
minimum of 3years’ experience since qualification, be familiar with the 
problems of indus trial accounting and management reporting to a tight 
schedule and be fluent in French. 

- All applications should be addressed, please, to: ; ' 

Box A7877, Financial Times, 10, Cannon Street, London, EC4P 4BY 

All replies loilL be treated in the strictest confidence btf a Mam Board Director 


SAUDI ARABIA 


Chief Dealer; 

Leading financial institution in the Eastern Province, 
requires a very experienced Chief Foreign Exchange Dealer, 
familiar with all aspects of spot and forward * ~ 
exchange as well as deposit dealing. 

The ideal candidate will be at least thirty five years old and 
will preferably have had general banking experience. 
Furthermore, candidates who wish to or have recently 
retired from active dealing would be suitable. 

O - 

Duties will include, aside from dealing, improving the 
. organisation of the dealing room as well as Wring and 
, training of junior dealers. 

Actual dealing will be more orientated towards corporate . 
‘ rather than interbank clients. . >■ ■ 

~ ' O . 

Further banking responsibilities will be available for 
, ' the right candidate in the medium term. • 

• 

Tax^reesd/orie^ free accomodation and an attractive 
benefits package will be offered to successful applicants. . 

Please reply in confidence to: 

Ml Alan Wood 

8, Crosby Square, London EC3A 6 AN. 


AH interviews will he held in London 


LAFARGE COPPEE 

A French Limited Company wftti on Authorised Opftil of FF.775 .702.2 DO 

Head Office: 28. Roe Emile fcWnler. Parts IB 
RCS PARIS B 542 105 572 
' 5IRET 542 105 572 00011 

TO HOLDERS OF 1&50K BONDS DUE 1989 

NOTICE OF MEETING 

NOTICE 15 HEREBY GIVEN to bolder* of 15.50% Bonds 19B1-19S9 of - 
. U .5.51 .000 nominal oacb that the First Ordinary Meeting of the General Assembly 
has been convened for Monday. 28th June 1982 at DShOO at the office of 
CREDIT COMMERCIAL D* FRANCE, 103 avenue des Cham ps-Ely sees. Parts 8. 
Franca, for the following pwooses: 

— To appoint two people to r e pre s en t the -Masse” fas explained in the 

Prospectus dated 23 ro June 1981) god two people to replace them should . 
the need arise. ■ . 

— lb Ax the powers and the remuneration of these Representatives. 

* , No action may valid ly be taken by the General Assembly unless at least one * 
qOertar of the bonds outstanding are represented at the meeting. 

Any bondholder, regard I ess of the number of bonds which he holds, may 
attend and vote at the meeting or may appoint a proxy is legally represent Mm 
and vote on hla behalf. 

However, only bondholders who have deposited their bonds flve days at least 
befbnt the meeting at either the Heed Office o< the Company. 28 rue Emile 
Mtntar. Paris 16: or Oddli Commercial de ‘France. 103 avenue des Champs- 
Blyede a . Parts 8. or one of the followtnB banks: 

— CITIBANK NJ., 11 Old Jewry London EC2, England 

— CITIBANK NA. A venae de Terruren 249. 1150 Brussels. Befolum 

— CITIBANK NA. P.O. Bov 5585. New York N.Y. 10043. US.A. 

— KREDIETBANK S..A. LUXEMBOURGEOISE. 37. rue Notre- Dame. Luxembourg- 

■nay attend the meeting or appoint • proxv to attend tor them. They wHI be 
issaad with the necessary admission card and/or proxy form. 

The text of the resolution* as well as all the documents which will be 
subm it ted to this meeting, will be held, as required by law, at the Head Office 
of the Company at the disposal of bondholders. 

BOARD OF DIRECTORS 


INTERNATIONAL 

APPOINTMENTS 

appear every Thursday. 

Rate £29.00 per single 
Column Centimetre 



Wairdley 


Singapore 


Following the continued rapid expansion of Wardtey Limited 
the Singapore Branch now wishes to recruit an. Operations 
Managec This new. rote rnctedes responsibility for accoirits, 
administration, EDP, Internal communications -and loans 
administration. An attractive package will be offered which wffl 
include free fumbled accornmpdation, house loan scheme 
and profit participation. 

Candidates must be qualified accountants and befemiBar with 
a broad range of accounting and back office procedures. A 
verystrong preference is for those with experience in afarian- 
. dal services company. They should have excellent commLmi- 
cationsl^ahdthepei5or|afilytpft 
worfc&ig office. (WW279) • ' ’ 



Cayman Islands 


Auditor General 

£ 18,840 p^., tax-free 

Applicants, aged 40-65, must possess an a pp ropr i ate 
good honours degree, and preferably be A.CLA- or 
A.C.C. A. They should Have held a senior Audit post 
in a British Dependency for at least 5 years and be 
frilly conversant with audit of government and 
paxastatal accounts and reporting to iheL eg isla tn re 
by published accounts. 

Appointment ■will be on contract for two years in die 
first instance, commen cing in September 1982. 
Salary is tax-free and benefits include a 15% gratuity. 


FIVE ARROWS FUND.N.V. - 

EmMWiN In Curasao. 
NothartMdaAmlUas 

In the Annual General Meeting of 
SharcbotdBro, held on June 3. 1-982 a 
dividend of UJLSO J5 per share has ■ 
been declared tor the year ended Dec- 
ember 31. 1981. payable as per 
June lO, 1982 to holders el shares 
outstanding as per June 3, 1982. 

Holders of bearer shares are entitled 
to receive the dividend against pre- 
sentation of Coupon Me. 14. with any 
- of the h era s Wcr mentioned agent 
banks. 

AGENT BANKS 

Bangae Bruxelles Lambert sa. 2 Rue 
tie la Regence.- Brussels. Belgium. 
Bendue Frtnee S-A-. TB Rue de Heme. 

1204 Geneve. 5wttzarland. 

Bangae RathxdMid SLA., 21 Rue 
Laffittx. Paris 9E. France. 

Inter n ational - PaoWc Corporation, 36 
Pitt Street. Sydney, Aateraha. 

Ptersen, HeMrlng and Pigrspn (Cura- 
cso). N.V.. 6 John B. Gortiraweg, 
__ P.O. Bon *M. Curacao bLA. 

M ar i on. Htidrlng end M er aw i N.V. 
Ite ien gre d yt 214. Amsterdam. The 

Rothschild Bank A.G.. ZpWtoertirasse 
181. 8034 Zurich. Switzerland. 

N. M. RothccMId and Sons Ltd.. New 
Court. St. SwMMn's Line. London. 
E.C4, England. 


BOND DRAWINGS 


At a drawing made on 15th April 1982 
In the presence of a Notary Public In 
London, Bonds ah 

STATE OF SAN PAULO . 

COFFEE INSTITUTE * 

7b» Ri. STERLING BONDS 
totalling £47.700.00 were drawn for 
redemption as at 1st July 1982. 

LIMx of drawn Bonds can be obtained 
at Lasard Brqthors 4 Co. Ltd., 21, Moor- 
htids. London, E.C-2. to whom Bonds 
should be presented Cor payment, at a 
price of *102 per cant 

Bonds presented for 1 redemption shall 
have Coupon Nos. 113 to 119 attached, 
otherwise an amount equivalent to the 
missing coupons shall be Withheld. 


PERSONAL 



FACT 

IT CANNOT BE CURED, it 
cajuaot be prevented, it can 
be controlled paly by proper 
treatment More research is 
required to And a cure — 

DIABETES 

‘ Join us — Help us 
Support us ■ 

BRITISH DIABETIC 
ASSOCIATION 
10 Qneen Anne Street 
London W1M OBD 


BREATHTAKING BARBICAN — Now com- 
plete. Tower flats to rant unfurnished. 
£4.500 to. £24.000 p.a. Company appli- 
cations welcoma. Ring D1.G2B 4372 or 
01-588 8110. 


Laurie & Company 

International Recruitment 
since 1909 


CLUBS 


7Jm fli F:t izk 4 f td~a* 




Limited* Executive Selection Division, 18 Grosverior Street, 
London WIX 9FD quoting reference. M applications vriB 
be forwardedp ourcient . 




EMPiOYMENT CONDITIONS ABROAD 
. ; LiMITED 

An InteiTsarional Xssoaatkui of Ewployeri providing cwnfidenrial 
information to te member prganitttfims ^ rehdnf 

to employment of expatriate* and rationah worldwide,- 

-01-637 7604 


; Company Secretary 

.A MAJOR INTERNATIONAL BANK requires 
..: • an experienced person-to carry out the Legal 
r ) Secretarial functions In its offices in Riyadh, 

: the Kingdom of Saudi Arabia. 

- : The post entails attendance to the usual' 

'• services to and for the Board of Directors In 
addition to the other related activities with a 
1 reporting line to the General Management. 

1 .Previous experience and full command of the 
ARABIC LANGUAGE are essentral. • . . 

Attractive salary and the usual fringe benefits 
• wlll.be provided. ■ . 

Please send your CV to: 

’ TRiad GL Saber, 1 Vbndlrf Street, 

Athens XT 612; Greece.! 


ACCOUNTANTS FOR CYPRUS 

£8,000+ depending on qualifications and experience 

THE CENTRAL BANK OF CYPRUS 

.invites applications from Cypriot Chartered or 
Certified Accountants. 

After a period of satisfactory service successful- 
candidates .will be promoted to. the post of Senior 
Accountant with -salary rising to £14,105. 

The post is permanent pensionable. 

Interested- persons who -have -taken their final 
- examination and are awaiting results may also apply. 

Applications to be addressed to: Mr A. J. Philippou, 
c/o Bank of Cyprus (London) Ltd, 27-31 Charlotte 
Street, London W1P4BH. : 

Further information may be obtained from the 
Secretary of the Central Rink of Qyprus— telephone 
45281 or P.O. Box 5529, Nicosia. 


. NEDLIBRA FINANCE B.V. 

US$25,000,000 Guaranteed 
Hosting Hats Notes due 1993 ? 
Guaranteed on a subordinated 
baste by 

UflRA BANK LIMITED 

For tha ihraa months 10th Juno 
1982 lo 10th September; 1982 the 
Notes will bear an internal rata of 
15^% per annum and the coupon 
•mount per U SSI 00.000 will be 
USS3.913.19. 


NOTICE OF PURCHASE 


GEORGE WESTON LIMITED 

U. S.VM.OOD.QOO 13>:% NOTES 
DUE 1 st JUNE 3987 

Pursuant to the terms an d conditions 
of die Nates. Noteholders are adviced 
that Notes of Nominal U.S.SZ. 107,000 
T ere "SElUMd during the period 2nd 
June- 1981 to 1st June 1982. Inclusive 
and applied to the Purchase Fund. 

As of 2nd June 1982. the principal 
amount of the Notes remaining In 
circulation was- nominal U.S. 52 5.S3 7.000. 

■ GEORGE WESTON LIMITED 
Purch ase Agent: Hambros Bank Limited 
Date; 10th June, 1982 


LEGAL NOTICES 


NOTICE OF MEETING OF CREDITORS 

THAT GOOD PLACE (FOODS) 
LIMITED 

NOTICE IS HERESY GIVEN, pur- 
sinmt to Section 293 of the Companies 
Act.', 1948, that a Meeting of the 
Creditors of the above-named Com- 
pany will be held at Bonningion 
Hotel, 92 Southampton Row. London 
WC1B 4BH on Monday, the 5th oay 
of July 1832 at 10.30 o’clock in tha 
before, noon, for the purposes men- 
tioned in Sections 293. 294 and 295 
ol the said Act. ' 

Owed this 8th day of June, 1982. 

By Order ol die Board 
SECRETARY 


HOTELS 

ACCOMMODATION 


THE 

INTERCONTINENTAL 

hotel BUCHAREST 

A great hotel located in Romania's 
capital city, vet within easy reach of. 
the country's finest holiday areas. 

The Intercontinental is a luxury 
haul with excellent facilities, 
speciality restaurants, indoor 
swimming pool, closed 
errfcurt colour TV end a high 
standard of service. 

*■» ideal for both holiday 
groups and the business- 
man, with good airline 
connections to London. 

Reservations through 
any Intercontmenul or 
Pan Am Office. 

Direct telex 11 541. 


ART GALLERIES 


RICHARD GREEN. 44 Dover St.. London. 
W1. 01-491 3277. EXHIBITION OF OLD 
WASTER PAINTINGS. Weekdays 10-6. 
Sats. 10-12.30. Closes 30 June. 


EVE has outlived the ottim because of a 
eottev ol fair ploy and value tor money. 
Supper from 10-3.0 am. Disco and too 
musicians, glimw-oui hostesses, exerting 
tloorsbows. 189, Refloat St 01-734 0557. 


PUBLIC NOTICES 


THE ROYAL BOROUGH OF 
KENSINGTON AND CHELSEA 

VARIABLE t RATE REDEEMABLE 

The Council of The Royal Borough of 
Kensington and Cltciua announce Chat 
the half yearly payment of Interest due 
on 9th December 1982 oh' the above 
steek will be at the rate ef £6.78125 
.[less income lax) per £100 of stock. 

10* June .1982 



. BIRMINGHAM COUNCIL. BILLT 
CISJLSflt 91-day Bills Issued loth June, 
1982. mature 9th September. 1SB2. 
Applications totalled £79m*. 'Minimum 
accented- ortee £B6JB5’:, ■ Avene* rate ef 
discount. 12JI5%. Total BUIs outstanding 
£40JS5m. 


















42 


v Companies aod Markets 


WORLD STOCK MARKETS 


J^mancial Tia^s-PtpSsda^ . ■ ] 


NEW YORK 


June • Juno 
B 7 


AC" Industrie*- 

AMF 

AM 1 Itn 

' ARA 

ASA ... 

avx co.-d 

Abbot Lab* 

Acme.Clcvc 

Adobe Oil ft Gas • 

Advanced Micro. 
Aetna Ufc ft Gas| 

• Alimanson tH.F.i, 

Air Prod ft Gbemi 

AKzona - — -I 

Albany int ..... 

AJberto-Colv • 

Albertson's- ; 

Alcan Alum intumi 
AJco Standard....; 
Alexander ft Al... 

Alegheny Int 1 

Allied Corp 

Allied Stores 

Allis-Chalmers,... 
Alpha Portd... — i 

Alcoa 

Amat. Sugar 

Amax 

Amdahl Corp 

Amerada Hess....; 

Am. Airlines - 

Am. Brand* 

Am. Broadcast's 

Am. Can 

Am. 

Am. Elect. Powr. 

Am. Express ■ 

Am. Gen. Jnsnce. 
Am. Hoist ft Dk 
Am. Home Prod.. 
Am. Hosp. Suppy: 
Am. Medical inti i 

Am. Motors 

Am. Nat. Reace*. 

Am. Petflna 

Am. Quasar Pet_j 

'Am. Slenderd— ‘ 

Am. Stores 1 

Am.Tel.&Tel 

Amcteklnc ' : 

Amtae _> 

AMP 

Amstar 

Anistead Inds—.. 
Anchor Hockg.... 

Anhauser-Bh 1 

Archer Daniels... 
Arm co 

Armstrong CK.—J 

Aeamara Oil 1 

Asareo ' 

Ashland Oil ! 

Asad. S. Goods. 

Atlantic Rich ; ‘ 

Auto- Data Prg,...: i 

Avco i ■ 

Avery Int) ! 

Avnet ' ‘ 

Ax-on Prod —..—i ! 

Snkerlntl ; : 

Balt Gas & El I 

Ban Cal ! 

Bangor Punta „.j ! 

Sank America 

Bank of N.Y , i 

Bankers Tot N.Y.. J 

Barry Wright 

B.iu8eh ft Lomb. ‘ 
Saxt Trav Lab....i i 
Beatrice Foods...; i 

Beker Inds I 

Bell ft Howell J ] 
Bell Industries ...i : 

Bondlx | * 

Beneficial .1 t 

Beth Steal ; 1 

Big Thee Inds i I 

Black ft Decker J J 

Block HR S 

B ue Bali J. i 

Boeing , 1 

Boise Cascade...., S 

Borden I i 

Barg Warner ; S 

Branlff Inti 1 

Briggs Stratn i 5 

Bristol-Myers £ 

BP S 

Brockway Glass.. 1 
Brown Forman B. 1 

Brown Grp I i 

Brown A Sharp...; 
Brqwng Ferris....; ; 
Brunswick _.i : 


Bucyrus-Erle ' 

Burlington Ind ... 
Burlington Nrthn: 

Burndy 

Burroughs 

CBI Inds 

CBS 

CPC Inti 

CSX -....I 

Campbell Red \_; 
Campbell Soup...; 
Campbell Tagg 
Canal Randolph. 

Can. Pacific ! 

Carlisle Corp i 

Carnation ......... J 

Carp Tech j 

Carter Hawley 

Caterpillar 

Celanoso Carp... 1 

Cental 

Centex 

Control ft Sw. 

Central Soya 

Cartam-teed 

Cessna Aircraft- 
Champ Home Bid 

Champ Int 

Champ 5p Plug- 

Charter Co 

Chase Man hatt’ni 
Chemical NY..._! 

Chose Is Pond 

Chicago Pneum.., 

Chrysler. 

Chubb 


Cigna i 54 u 

Cincinnati Mil.... 20ta 

Citicorp XSi« 

Cities Sendee.,...) SHU 

City In vest , 217* 

Clark Equipment 19 1* 
Clove Ctlffe Iron.! IB la 

Clorox 13 ij 

Cluettt Paaby ....| 164 

Coca Cola 1 55 U 

Colgate Palm ; 16Ar 

Collins Aikman.J 111 * 
Colt Inds I 83 U 


1SI B ! 13 U 
3QT B 1 21 
44 44 J* 

175* . 1BU 

* 2 h ; *au 

33 u I 335a 
36 1* 36 U 

363* 33 

393d ' 40 
Id 1 * I U 
M3b 34 ta 
8368 -333* 
34 lg 3358 
2038 20Ja 
224 22 
31 31 

34 34U 


3018 j 30 U 


ins ; ITU 




IBIr j 1818 


El Paso j iflse ; isu 

Emerson Eleat.J 43s» ; 43 la 
Emery Air Fgt ...I 75* 7 t 8 

Emhart. — ....j 34 341a 

Engelhard Carp.^ 22 U } axis 


Enserch.. : 183* 19U 

Esmark - i 46 U 46123 

Ethyl ! 18fB 19 

Evans Prod 95j 93* 

Ex Cell O 22 28 

Exxon .. 27tj 27*h 

FMC 233* 84 

Faberge.. 13 V 13U 

Fedders 3Jg 31s 

Federal Co- 22U 22U 

Federal-Mogul.... SOI* 20 la 
Fed. Nat. Mort....: 9i« 9U 
Fad. Paper Brd. J lfl >2 19*b 
F ed. Resources..' 03* Dig 
Fad. Dep, Stores' 413a ! 415 b 

Field crest Ml 21*8 > 22 

Firestone.— j 10fa 104 

1st Bank System! 299* 3D 

let Charter Fin.. 94 9 V 


33U ' *54 
114 l 114 


384 i 584 
13U 134 


1st Chicago ! 143* | i«? s 

lit City Bank Tex 244 t *4 
1st Interstate..... 26ia 1 27- 
1st Mississippi.... 99 b I 94 
1st Nat. Boston... 234 23* 

1st Penn *4 ! *U 

Fisona. 64 ( 64 

Fleetwood Ent... 14a* 144 

Flexl-van 164 164 

Florida PwrftL- 32 Situ 

Ford Motor. 213* 22 

Foremost Mck-.. 294 293* 

Foster Wheeler... 11 .11 , u 

Freeport MoM.... I5?8 167» I MacMillan... 

Fruehauf..— 194 194 I 

GAF 114 114 I 

GATX 28 254 1 


—I 124 I 144 


Cannot _.J ' 12 t 8 

Gelco J 164 

Gen Am Invest...! 144 

Gen Cinema | 404 

Gen Dynamics ...( 254 

Gen Electric 604 

Gen Foods 364 

Gen Instruments 334 

Gen Mills 404 

Gen Motors ...... 44 

Gen Pub Utumeel 43* 

Gen Signal ... 344 

Gen Telep Baa — 1 274 

Gen Tiro 19T 8 

Geneses — 4 


344 I 345s 


Genuine Parts.... 

Georgia Pac 

Geosource... 

Gerbes Prod 

Getty OK 

Glddens Lewis...; 

Gillette 

Global Marine 

Goodrich (BF) 

Goodyear T! re- 

Gould 

. Grace . 

Grainger (W.W)— , 


| 347a 34 t 8 

133* 133* 

! 41 415* 

294 297g 

6QU 50 
157a 16 

Slag > 314 
114 1178 

19 194 

225* 83 

234 >54 

34 s* 347, 
57 374 


Low J High I Low 


m 


233 


lndurt‘1 Div. yields 


June 4 j May 28 





HOLLAND 

ANP-CBS General 71970) ( 00.1 
ANP-CBS Indust ( 1870) 


Indust ‘I dlv. yield % 


Ind ust' I P/E ratio 


Long Gov. Bond yield 


NY. 8.E. ALL COMMON 

j I I 1983 
June June | June June — — ■ 

8 7 j 4 • 3 I High j Low 

63.08 63^5665.42 64.42 71J0O [62.62 
I I I I M/0 ' I'dllQ 


May 26 


5.74 


7A1 


12.95 


pSHMi! 


Rises and Falls 

^une 8 June 7 ; June 4 


fTALY 

Banca Comm ltalJ187S) 


JAPAN** 

Dow Average (1B/G/40) 
Tokyo New SE M/ WS) 


NORWAY 
Oslo SE (1/Ti71) 


m 





184 } 184 







Brunswick Oil 



viking Res 
Vmf Stork 


Yellow Frt Sys 


114 114 


Inter. Pipe. | 16T S f 384 

Mac Bloedel— . 194 194 

Marks ftSponcaf 10 ■ ID 

Massey Ferg. 2.53 2.66 

McIntyre Mines- 267a 279* 

Mitel Corp.......... 169* 16 

Moore Corp- 364 354 

Nat. Sea Prod* A 74 74 

Noranda Mines... 134 134 

Nthn. Telecom... 454 1 464 
Oakwood Pet...... 104 f 104 

Pacific Copper... i.SO 1.64 
Pan oan Petrol- 67 ■] 665* 

Patino 21 f-21 

Placer Dev. 12 [ 12 

Power Corp—.. 94 I 94 


Quebec StrgnZ—j 2.60 [ 4.51 


mw (4m sm.s nom 

426.1 fS/TJ 822JI(2/<) 


mas mm i 111 . 0 * m«i 


111.1 (ISA) (4/1) 

124.B (ISIS) . 07.7 (4/D 




307* | 314 


144SJB (T2/1) 


85JJ (4/1) 


Ga89.59 (17/8) 
620.70 (17(B) 



Issue# Traded 1JB59 ■ 

Rises /JOB 

Falls 868 

Unchanged..— 4S3 

New Highs. 5 

New Lows— 121 


4876 11,826 
539 I 330 
905 11,096 
432 ! 400 
6 j 2 
175 I 102 





June 1 June June 
7 I 4 3 


SOUTH AFRICA 
Gold (136#) 
Industrial (1381) 


SPAIN 

Madrid 8C (HriZ/tl) 


190 — 1.5 

266il —0,9 
169J5 — BJi 
145.8 -f-6.5 
184 — OJ5 



m 




?jpp 


,W3M (SI2) 


U2.7B (4.1) 
B1S.D3 (4.1) 


TORONTO Composite 1 - MfikV 14632 


NEW YORK ACTIVE STOCKS 
_ Change 

Tuasdsx Sleeks Closlna on 


.United Technoli 

IBM 4.. 

Mesa Petrlm.... 
SeMumbwijer... 
Cities SanncB— 


Change 

Sleeks Closing on 
tradad price Bay 
2.180,600 35 (-4* 

2,034.400 59V *“1V 

.1.426,700 19V H- h 
806,900 594xd.-1V 

731.400 3SV V 


Change 

Stocks Closing or 
traded price day 

Met* — 892; 300 2P* i, 

.GenerM Motors 559,600 44 \+, 4 

Emery Air 442,500 7* - V 

N.L. Inds, 436,700 18 T i t- ^ 

Sons? 435.700 — 


BBB.M (2 8(4) 


123.1 (1U«) 


'(**) Saturday. June 5: Japan Dow 7JB7.47, TSE 544.87. 

B«4e vehwe of ftU Indices are 100 except Austro He All Ordinary and MeMla— 
600. NYSE AH Coiama n S 0c Gtondeid and Poora— 10: and T oro nto 1 .000: the 
feet named baaed on 1976. t Excluding booda. 1 400 todustriRhk 5400 
Industrials^ plua *o utffitiM. 40 RneneW* sod »' .T«n»swt8, - « Posed 
u Unavailable. 


Electro be I — . 
Fabrigue Nat 

GJL.Inno— 

GBL (BruxL) 

Gevaert 

Hoboken 

Intercom . ... 

Kredietbfthk 
PwiHIdgt 



Aoasite— — 
Banco BnsfL— 


I 












































































































• -) 





Financial Times; Thursday June 10 1982 

LONDON STOCK EXCHANGE 


43 


Leading shares fall back and business suffers on lack 
of incentive atiter base rate cuts— Gilts also lower 


l 


V :vi 


j. ... 


. . Ataioant- Dealing' Paten 

• .• Option. ... . 

“First Dedans Last Account 
Dealings dons Dealings Day - 
Jose 7- Jane 17 June 18 June 28 
June 21 July 1 July 2 Julyl2 

- July 5, July IS ’July ]S July 26 

•“User tints *.* '. dealing may .take 
place from' 9 aip two Business ' days 
earlier. 

The psychological effects o i 
Tuesday's faSure by tbe FTVSO- 
share index to attain a best-ever 
• peak dampened London stock 
markets yesterday and both main 
, -aayestaneot areas suffered. Hopes 
. were high- last Friday that tbe 
new trading- Account, which 
started on Monday, would see 
the index break through the 600- 

- barrier for tbe first time. 

; " Tuesday's move by the UK 
-clearing banks in. reducing base 

■ lending rates, by J to 121 per 
cent, strengthened these convic- 

■ Hons, especially as . Tuesday’s 
first . index rose to within less 
than a point of its April 1982 
record high of 597.3. Follow^ 
through investment support 
failed to materialise. ■ however, 
and leading shares sdbsequently 
drifted lower. 

The trend was resumed at 
yesterday's opening and tbe 
downturn gathered pace follow- 
ing a setback in the recently 
strong Gilt-edged market after 
comment on last month’s sharp 
expansion in money growth. 

Equity dealers reported .littie 
selling of note, but prices wilted 
in the absence of institutional 
and other investment demand. 
Recovery attempts lacked con- 
viction and most leadhig shares 


dosed at the session's lowest 
with the result that the 30-Aare 
index sustained ’a f all'of ' 6.7 at 
5872-' Of. the constituents, TI 
were, vulnerable to. renewed 
selling pressure and' dropped 10 
-to 128p on a broker's down-, 
graded profits forecast. ; • 

Gilt-edged securities, -only 
slightly easier on Tuesday, gave' 
more ground yesterday as loose , 
stock, came oq. offer. Business 
was oh. a reduced scale, probably . 
reflecting funding of yesterday’s 
tenders for the new short tap 
.stock. Treasury 12 i per cent Con- 
vertible 1986. These were allotted 
in fufi at the minimum price of 
£97$. 

Helped by last month's Cen- 
tral . Government Borrowing 
Requirement, quotations at bods . 
ends of the market eventually: 
moved away from the worst to 
-close- with . losses generally, 
limited to $. The .FT Government 
Securities reacted 026 to 70.13._ 

. • ' V . i.J . 

Minet up again 

Minet advanced 7 further to a 
1982 peak of-211p as rumours of ; 
a ‘bid or dawn raid from over-, 
seas persisted; the group’s flxxt- 
. quarter figures are scheduled for 
next Thursday. 

Midland rose 5 more for a 
two-day advance of 17 to 355p .' 
on further "consideration of the 
£L00m Loajr stock placing wbicb 
allayed fears . of a rights issue. 
Other major plearers held firm . 
in the wake of the base rate ' 
reductions with Barclays closing 1 
4 to tbe good at 478p. Merchant 
banks softened in places. 


480 



360 


■ 340 



• 

June 

9 

June 
a - 

June 

■ 7 - 

June 

4 

June 

3 

June 

2 

A 

year 
■ ago 

" 

Govammant £«■.:. 

70.13 

70.39 

70.40 

! 70.16 

70J38 

69.76 

.66.19 

. . 

Fixed Interest......^,. 

70.10 

70^2 

70.32 

10.32 

70.26 

TOJOO 

67.25 



587.3 

594.0 

592.6 

- 687^ 

686^ 

585.1 

542.3 

: a 

□eld Mina* 

231.3 

235.7 

228.0 

222.0 

224.0 

220J) 

535.7 


Old. Dhf. Yield 

5.35 

5.31 

5.3 S 

5.37 

5.39 

5.39 

6.94 

;■ 

Earnings, Y1d.X(full) 

11.15 

113)6 

11.11 

11.19 

11^3 

lli26| 

11.81 


P/E Ratio (net) 

.10^1 

10.99 

10^4 

10.86 

10.82 

10.79 

10.57 


Total bargains 

16,574 

17^26 

16^38 

17,032 

15.399 

14.610 

19,103 

j 

Equity turnover £m. 

— 

153.23 

128.40 

136.50j 123J26 

129.26, 

223.39 


Equity bargains 

- 

15,2521 18,498 

M^83«13i30 

12^05 i 14,410 


FINANCIAL TIMES STOCK INDICES. 


10 am 5903. 11 am 588.6. Noon 5B83. 1 pm 688.0. 

. - 2 pm 687.9. 3 pm 588.8. ‘ . 

Baaia 100 Govt. Sacs. 16/10/28. Fixed Int, 1S2& Industrial Ord. 
1/7/35. Gold Minas 12/9/58. SE Activity 1974, t Corrected. 

Lataat Index 01-246 8028. . 

• Nil-10.10. . 


HIGHS AND LOWS 


5.E. ACTIVITY 



1982 

Mnoe Compliat’n 


June i 

S "i 

June 


High 

, Lbw.| 

l.Hfgh. 

I* -Low 

• ' :' r. ^ 







—Dally 



Govt. Sms...] 

70.40 j 

(fl 8) - 

6T.89 ] 
j (5/D 1 

127j4 

(9/1/56) 

48.18 

(5/1/73) 

Gilt Edged 
Bargain*— 

200.l1 

1 

1 iea^ 

Fixed Int.... 

70.32 

62.79 

150.4 

50.63 

Bargains... 

98.8 

1 aiji 

(7lS> 

(7/1) 

(Mm/47) 

(5/1/75) 

Value _.! 

• 313.8f 259.6 

Ind. Ord — 

694.0 

«/«) 

618.1 

(5/1) 

'597.3 

(50/4/tl) 

-49.4 

(H/9/U) 

Gilt-Edged 

Bargains^ 

181^ 

1 178.0 

Gold Mines . 

302.0. 

•209.2 , 

558JJ | 

1 43/5 

Equities 




P/D 

- (5/5) | 

(28/9/80}- 

^B/lB/71)|SArga Inal. 

88^1 
271. 9' 

84^ 

1 854.6 


, •' Stewart Naim, the former tex- 
- tile concern revamped as a pro- 
perty company, met speculative 
' support and put on 4 to 25p. . 

Interest in Breweries tended 
to fade, Bass, still reflecting dis- 
appointing interim results, eased 
2 further to 238p. Among 
■ Regionals, Joseph Holt rose 80 
to SOOp in an extremely thin 
. market. ; - 

Thei undertone in Buildings 
stayed firm and the jeaders 
closed with little alteration. 
Secondary Issues again featured 
TUbnxy Group which, despite the 
company’s, recent denial at any 
knowledge of a bid approach, 
gained 10 more to a 1982 peak 
of 525p. Aberthaw Cement met 
renewed support .and added the 
. same amount to 355p, while 
Marshalls (Halifax) firmed 2 to 
a 1982 peak of 112p. In contrast 
William Leech, which announced 
poor interim results recently. 
Shed 2 to a 1982 low of 61p. 
while profit-taking dipped 10 
from Burnett and Hallamshire, 
875p. Brownlee reacted to 6 Op 
before closing a net 1* down at 
61 $p fai owing tbe annual profits 
slump. 

' I Cl fluctuated narrowly and 
settled 2 dearer on balance at 
332p. but Fisons, a rising market 
recently in the’ wake of the com- 
pleted sale of the group’s fer- 
tiliser division to Norsk Hydro, 
shed 5 to 360p. Amersham stayed 
at 223p: the price in yesterday’s 
issue was .incorrect. Among oiher 
Chemicals. Leigh Interests shed 
2 to 96p r awaiting today's pre- 
liminary results, -while Croda In- 
ternational lost a penny to 48p 
despite a broker’s bullish review. 

Some Sound nervous 

‘ A sensitive market awaiting 
today's interim figures. Sonic 
Sound lost-3 more to- a/p. Else- 
where in Stores, J. Hepworth 
cheapened a few pence to 114p 
on the liquidation of speculative 
positions in' tile absence of the 
much-rumoured, bid or dawn 
raid. On the other hand, N. 
Brown drew farther strength 
from . the recent good results 
and advanced 7 to 135p. Revived 
speculative . support lifted Tern- ' 
Consulate 4 to S5p. Snmrle 


gained 5 to 57p and Comet 
hardened the turn to 114p, the 
latter following half-year 
results in line with expectation*. 
’ Electrical ' leaders turned 
quietly Alii as buyers withdrew 
and sporadic profit-taking took 
its toll. GEC eased to 945p 
before closing -a net 7 down at 
948p, while BICC lost & at 350p. 
- Ahead of the results, due on 
June 22, Racal ended 5 off at 
• 425p. Cable and Wireless hist 8 
to 280p but AB .Electronic con- 
trasted with a rise of 18 to 205p. 
Stifll reflecting hopes of a -bid 
ton Plessey, Ferranti moved up 

5 ter a 1982 peak of 790jx 

Engineers were . featured by 

renewed weakness in TI, down 
10 more . at - I28p. following a 
broker's downward revision of 
profit estimates. Vickers, a good 
, market of late albng with otter 
defence stocks, turned reaction- 
ary and gave up 8 to 154p„ while 
GKV eased 4 to 165p with 
Hawker similarly easin’ at 340 p. 
Late setting accompanied by 
reports of a broker's meeting 
with tbe company left Babcock 
8 cheaper at lllp. Disappointing 
interim figures prompted a fall 
to IlOp in Westland before a 
rally set in- to leave tbe dose 
unaltered on the day at 117p. 
Pegler-Hattersley, in contrast, 
responded to good results with 
a rise of 6 to 222p. Capper-Neill, 
s&eU reflecting lower animal 
profits, feH 3 more to 54p. Await- 
ing today's' interim statement, 
B. Elliott eased 4 to 66p. . 

Tate and Lyle met sporadic 
selling and shed 4 to 176p. but 
British Sugar found support and 
gained 15 to 470p. Elsewhere in 
Foods, ‘ Northern' ■ softened a 
couple of pence awaiting today's 
interim results. Further demand 
ahead of the interim results, due 
on June 29, lifted' Glass Glover 

6 tor a two-day gam of 14 to 
148p, but Cullen’s Stores shed 
5 to 220p, after 215p, with the A 
the same amount down at a 1982 
low of 183p following the poor 
preliminary results. Bernard 
Matthews gained 5 to 115p; the 
Matthews family has increased 
its stake in the company to 50J> 
per cent - 

PllMngton took a distinct 
him for the worse in miscel- 


laneous industrials, falling 15 .to. 
233p on nervous offerings ahead 
of tomorrow’s annual figures., - 
Johnson Group Cleaners dosed 
13 down at 232p following the 
liquidation of' speculative posi- 
tions in the absence of the much- 
rumoured bid, while European 
Ferrlps declined 5jfc to 70p in 
the wake' of an Investment 
seminar and on fresh concern 
about - 'the company’s TT.S. 
property interests. Hanson Trust 
lost 5 to 169p on news of the 
relocation of its Ever Ready 
(GB) head office -and probable - 
redundancies, while Sangers 
lost 4. at 3Sp, with sentiment 
still unsettled by the recent 
Boardroom upheaval. - • 

Rights issue suggestions ac- 
companied a fail of 3 to 119p in 
Chubb, while reactions of S and 
6. respectively were .recorded £o 
Thomas Tilling, 133p, and Smiths 
Industries, 357 p. By way of con- 
trast, Cole jumped 9 to 94p on. 
the announcement that Bajau has 
increased its stake in the com- 
pany 

Still unsettled by reports of, 
falling holiday bookings. Horizon 
Travel shed 8 more to 200p and 
Saga 4 to 14lp. Elsewhere in 
the Leisure sector, Nirnslo, a 
volatile market, reacted 22 to. 
163p, while Pleasnrama, dull of 
late following • the police raids 
on two of the company's casinos, 
shed 15 -more to 225p. Renewed, 
demand in a thin market lifted 
Samuelson Film Service 15 to . 
173p.. 

Dunlop moved against the 
trend in Motor Components, 
tou chin g 72p before dosing a 
penny dearer on balance at 71 p. 
Lucas met selling and dipped to 
135p before settling a net 5 down 
at I87p, while Dowty eased 2 to 
139p. 

Geers Gross attracted renewed 
investment support and rose .20 
to a 1982 peak of 152p, while 
further small buying in a 
restricted market lifted book 
publishers Routledge and Keegan 
Paul 20 for a two-day gain of 
40 to 220p. 

Properties were inclined easier 
in the absence of fresh support. 
Land Securities shedding a 
couple of pence to 27 8p and 
MEPC a penny to 199p. Great - 
Portland Estates softened 2 to 
162p; tbe preliminary results, 
scheduled for yesterday, are ex- 
pected today. 

Oils easier 

Oil shares were inclined easier 
pending details of expected con- 
cessions by the Government on. 
petroleum revenue tax. Amonji 
the leaders, BP drifted off to 
close 4 cheaper at S18p and Shell , 
closed a couple of pence off at 
422p. Among the exploration 
issues, Cariess Capel finished a 
shade lower at 177p following 
the preliminary figures, • but 
Jackson Exploration firmed 2 to 
I18p on the production-sharing 
contract with the Indonesian 
Government. 

Movements in Trusts' were 
usually limited to a few pence 
either way. Among Financials. 
Robert Kitchen Taylor turned 
reactionary following comment 
on the interim results and eased' 
6 to I35p. Akroyd and Smithers, 


In .contrast, encountered occa- 
sional support and improved 6 
to 218p. 

Interest in Shippings faded 
and quotations ehded little 
changed. Elsewhere, Mersey 
Docks met buyers and put on 2 
to 18p. 

Among scattered movements in 
Textiles, Hlghams, » reflecting 
satisfaction with the preliminary 
figures, firmed 2 to 44p. Noltiu- 
ham Manufacturing, -a good 
market of late, met profit-taking 
and gave up 5 to 183p. 

: -South African Industrials were 
featured by a rally of 50 to 280p 
-lit the recently beleagured 
.Greatermans Stores A. 

RTZ weak 

Renewed weakness in base- 
metal prices on the London Metal 
Exchange, where copper fell to 
a -31-year low and- other metals 
were also weaker, prompted 
heavy selling of tbe leading 
London mining finance houses. 

Rio Tlnto-Zinc were particu- 
larly vulnerable, reflecting the 
company’s substantial copper 
interests, and dropped 23 to a 
1982 low of 397p with heavy 
selling reported in the after- 
hours' trade. 

' Charter and Gold Helds lost 
7 apiece- at respective 1982 lows 
of 195p and 345p. 

Other mining issues retreated 
across a broad front with Golds 
drifting lower following the $2 
fall in the bullton price, finally 
$328,375. and the downturn in 
the Financial Rand. The Gold 
Mines index gave up 4.4 to 231.3. 

Heavyweights sustained losses 
ranging to i, as in Western Hold- 
ings, £15 J . but medium-priced 
issues included one or two firm 
spots still reflecting the divi- 
dends announced on Tuesday by 
.-mines in the Gold Fields group. 
Libanon featured with a gain of 
20 to 802p. 

South African Financials mir- 
rowed Golds. De Beers fell 4 to 
a year's low of 206p wftle . Gold 
Fields of South . Africa dipped 
£ to £23$ and “Johnnies " $ to 
£26. 

• Interest in Traded Options 
waned further with the number 
of deals down to 1,192 ' from 
Tuesday’s 1,584. Shell were rela- 
tively active, recording 195 
contracts, 193 being puts: 180 
of the latter were done in the 
October .390 series. 


OPTIONS 

First . Last Last For 

Deal- Deal- Declare* Settle- 
- togs ings tion ment 
May 24 June 11 Sept 2 Sept 13 
June 14 Jane 25 Sept 16 Sept 27 
June 28 July 9 Sept 30 Oct 11 
For rate indications see end ■ of 
Share Information Service 

Money was given for the can 
of Sound Diffusion. Brengreen, 
Town and City, Lonhro, Renold. 
Pacific - Copper, First National 
Finance, Beecham, Barker and 
Dobson and British Aerospace. 
No puts were ' reported, but 
double options -were arranged 
in Lofs, Renold, Chloride and 
I CL. 


RECENT ISSUES 




EQUITIES 




Issue 

price 

P 

Amount I 
gold up | 

2=3 

3.a 

1982 . 

Stock 

Oloslng | 
prloo 

_ P _ 

+ — F 

d J 

:! 

c o 

Gross 1 
Ylsld ] 

. o 

a 

-Rig h 

' •• 

Low 

S°I 

■pj 

■1250 

F.P. 

23/6 

280 

265 

Assoc. Heat So prices 290 

42 

bS.O 

2.1 



£90 

F.P. 


101 

92 

■5 Black (Michael) 20p 

99 


u3J) 

2.4 

4.3 

11.7 

15 

F.P. 

15 4 

32 

19 




— 



1260 

F.P. 

4/6 

420 

298 

4- Cent. Microwave .420 

-MM. 

b535 



f 150 

F.P. 

38/6 

162 

140 

«pruofc Hldge. 

162 

+ 7 

63.3 



£87 lap 

F;P. 

25/5 

98 

84 

Electro- ProL USSO.SO 

86 

+ 1 


i.oln.6 


-4. 

' — 

17 

10 

&Group l mi Optibiu.... 

14 

»*.-a> 

— 

— 


— 

£200 

F.P. 

14/3 

250 

245 

4>l0 Technology. 

347 

M M-< 

— 

— 

- 

— 

5105 

F.P. 

*-* 

121 

110 

•9M|Iea 33 10nT... 

117 


lid2.B 

4.3| 8.4|10.1 

600 

F.P. 



630 

935 

Orlilame 8A fUSSi.M>;655 


MbOe 8JS 

4.4:10.2 

77 

F.P. 

— 

97 

88 

>r> Radio City *A" NV... 

92 


95.6 

1.9 

8.7|10,6 

140 

F.P. 

— 

174 

160 

4. Ruddle tG.HDp 

174 


a3.3 

2.6 


. 

F.P. 



29 

19 

Stewart Nairn 

35 

4< 

— 

— 


— 

M 

F.P. 


90 

50 

Zambia Cons Cpr lOK 

50 







FIXED INTEREST STOCKS 


Issue 

price 

£ 

Amount 
paid up 

4100 

£10 

499J8a 

112b 

1100 

F.P. 

4"! 

F.P. 

^100 

F.P. 

<ioo 

F.P. 

1100 

Nil 

'10O 

CIO 

£100 

F.P. 

1100 

F.P. 

£100 

F.P. 

•1107 

F.P. 

•ilOO 

£10 


tig. 

«tt-o 

r* 


1982 


High r Low 


Stock 


,11 lOb BournemouttiWaterDX Red. Prf/87 89 
14(7 I 85lc | ZUalCred. Fonder de France 143% Lon. 2007 
1/7 1 102i4-101 i 4 ;East Anglia Water 9* Bed.Prf. 1987.. 
14Slcll5& First Nat. X2ipc Conv. Uns. Ln. 19B7.J 
47 38 Grt. N’rth’n Inv. 4pc Net Cum. Prf. £1 

46 > 45 I Do. - 4.7pc Net Cum. Prf. £1 

lpm; igpm Marlborough Props. lOfcCnv. Ln/aa -2002 

It 1 11 Mid-Southern Wtr. 9% Praf. 19B7 

1007 B ! lOOA Nationwide Bdg.Soc. 1+*«S (23/4/83) 
100 i 99iV ! DO. 13TsS iZ3|6(85) 

ilOOla 100i 8 ' Do. 134*3 (3/6/83)..! 

99/4- ;113it'l09VQueerts Moat 104? Cnv.'89-Bl -...j 

— 'll! 101? Wrexham Water 9% Red. Prf. '87-89 


5-2 

OB. 


H-or 


11 

85 

10114, 

148 

39 

46 

ir 

1006a 

100 

lOOia, 

ir 1 




+V 


“ RIGHTS” OFFERS 




Issue 

price 

■P 

| Latest i 

1 Ronuno. 

E-s oato r 

<3. ; • ■ | 

10 

F.P. ‘27/4 28/5 | 

170 

F.P. 13/5 24/8 i 

135 

F.P.:28/5. 9/7 1 

174 

Nil 1 — - | 

Dkrl8S 

Nil i — — | 

6 

F.P.110/5 21(6 | 

500 

■ F.P.120/5 18/6 j 

500 

F.P.i29.5 ‘ 18.6 { 

Dr. 150 

Nil — — 1 

50 

Nil | — - 1 

325 

Nil | - - j 

170 

F.P.-14/5 11/6 • 

10 

F.P.|24/3 23/4 | 

133 

F.P.J10/5 10/6 - 

• ! 


1983 


| High I Low 


Stock 


1544,' tO 'AnsPacher (H.) Sp 

190 180 -.Bank Lauml lUK) £1 

179 1 158 earless Capel lOp 

59pm, 44pm|Grand Mat 50p 

5ispm| 3i;pm Great Northern Tel (£10) M , 

6 1 5 [Grove be 1 1 (&p) 

615 [ 575 iHammerson Prop 

590 550 Do. 

213 pm! ZsapmlNorsk Hydro (Kr.lOO).. 

Bpm| Bpm Presa (Wm.l lOp 

2Qpm 

■ 1*»b 
ispm 




N-or' 


105*1 

IBS 

173 

55pm 1 


1—1 

_Tj“ 


SOpm.Saatchl & Saatchl lOp..... 
2 [Steel Bros 


27: 


10 i* SUirla lOp 

i*pm Young (H.) 


3i*pm|- 
5 

605 
585 , 
25gpm 
6pm 
90pm 
242 
Ilia 

i«pm! . 


S 


Ranondation dan moany last day for dastlng free of stamp duty, b Flguraa 
based on piospsetus aatlmsta. d Dfvldand rata paid or payable on part of 
capital: cover besad on dividend on fuH capital, g Assumed dividend end yield. 
t Indicated dividend: cover relates to previous dividend, P/E ratio based on latest 
annual Bantings, u Fore cant dividend; cover baud on previous year's namings. 
F Dividend and yield based bn prospectus or other official estimates for 1962. 
Q Grass. T Figures assumed. 0 Figures or report a waited, t Cover tHowa for 
conversion of shares not now ranking for dividend or ranking only for restricted 
dividends. § Plating price, p Pence unless otherwise indicated. 4 Issued by 
tender. I Offered to holders of ordinary shares as a "rights.** **lssdsd by way of 
capitalisation. H Raiuttoducad. 41 Issued In connect! oa with reorganise tion. 
merger or lafce-evar. Jfl. Introduction. O Issued to former preference holders, 
■ Allotment letters (or foHy-pald). • Provisional or penfypsld sUotment letters. 
If With warrants. It Dealings under apBcial Rule. Unlisted Sacurities 
Market, tt London listing, t Effective leaue price after scrip, t Fbrmeriy 
dealt in under Rule 163(2}(e). A Issued free as an entitlement to oidiniry 
hoWere. 


ACTIVE STOCKS 

Above average activity was noted In the fallowing stocks yesterday 




Closing 




Closing 




price 

Day's 



price 

Day's 

Stock 


pence 

change 

Stock 


penes 

change 

Cabl8.and Wireless ... 

280 

- 8 

Lucas Inds 


1B7 

- 5 

Cons Gold Fields 

345 

- 7 

Pegler-HattaraJey 



222 

1+ 6 

Euro Fames 


70 

- 54 

Pilkington 

44.ee—. 

233 

-15 



• 94B 

- 7 

TI 


12B 

-10 

Johnson Grp 

Cleaners 

232 

-13 

Tillinq (T.) 


133 

- 5 

Libonon 


£02 

+20 

Westiand 


117 



TUESDAY’S ACTIVE STOCKS 



• ' , 

Based 

on bargains recorded In S.E. Official List 




Tuesday's 



Tuesday's 



No. of 

closing 



No. of closing 



pnee 

price 

Day's 


price 

once 

Day's 

• Stock 

Changes pence change 

S:cck changes pence change 

Midland Bank TET 

350 

+ 12 

Grand MeT New 

11 

o5pm 

- 1 

Bass 

T5 

240 

- 7 

NatWoet Bank 

11 

452 

+ 9 

GEC 

.. 14 

355 

'+ 1 

Plessey 

11 

465 

+10 

Euro Ferries 

.. 12 

75 1 - 

+ 04 

Barclays Bank 

10 

472 

'+ 7 

Racal Elec ... 

.. 12 

430 

— 

' Glaxo 

10 

715 

- 2 

RTZ- 

.. 12 

420 

rr 8 

imperial Group 

10 

93 

— 

Allied? Lyons 

.. ‘ 11 

■ 99 

— 

Northern Eng... 

10 

96 

— 


FT-ACTUARIES SHARE INDICES 


•That hto 


an the jotet cofaptotton of the Ffanscfai Tines, the bstftute of Actuaries 
and ths Faculty 



EQUITY GROUPS 

Wed June 9 1982 

S 

Mae 

7 

0 

Thr 

3 . 

£9 

& SUB-SECTIONS 

Flgoms In prnmthm » *m_ .amber of 
Tre r * i T par rcUbb 

kite 

Mol 

S£ 

% 

EsL 

Earnioss 
Yield % 

(MkJ 

Orbs 

Oh. 

Yield % 
(ACT 
al 30%) 

Est 

WE 

Raffs 

OfeO 

fate 

Na 

Index 

Mol 

Mm 

Hr. 

' fate 
>0l 

fate 

Ho. - 




-fl.9 

9 31 

049 

1336 

CSS 

44594 

39516 

39579 

54250 ‘ 

2 


-02 

-0.7 

HJSt 

523 

932 

94M7 

34282 

34U5 


200 

3 




440 
• 242 

240 

1945 

63435 

340225 

62254 

mo 

out 

MM23 

0532 

M71A 

55242 

37564 



mu 

-U 

1330 

648 

9144 

it|i i 

50250 

SUM 

49775 

mus 



206.0 

-12 

11.12 

566 

1046 

20593 

24439 

21640 

20605 




166.12 

-23 

3227 

735 

3224 

31297 

37505 

3M0B 

XTOlM 



immod 

94.40 

-0.7 

142 

7.07 

— 

9504 

9U6 

B5B 

«31 

•un at 



369.72 

-LI 

9.91 

573 

1235 

3704 

37136 

3H21 

3075 

37112 

ZL 

22 

*, ■. -;i’ j V - ; ; s 

rrvr t 

-04 

-03 


551 

633 

9L60 

271 

m 

31600 

33(50 

31587 

39341 

3M31 

32947 

51647 


•1 

-03 

3735 

6.95 

677 

ZW4L 

2(507 

5 

2M39 

2555B 

26 

27 




949 

341 

1336 

62(45 

0039 

I— 

QZ99 

515(2 



-92 

—0.7 

726 

3047 

356 

527 

1625 

1242 

m 

M 

Er 

4750 

40945 

<OM : 



yr? 

-02 

723* 

546 

290 

53576 

I 

i- 

53070 

50524 



TO 

-04 

1530 

732 

740 

15512 

mx 


14940 

24926 



-7* 1 

-04 

1025 

044 

1246 



20691 

DS54 

295J5 

35 



—0.9 

1294 

632 

254 

mm 

27336 

37543 

13575 


’TTI 

-21 

2157 

211 

■ 1 

33*32 

33977 

39636 

33250 

25779 





020 

524 


24734 

2HB 

2MB 

2054 

29532 


: “i 

-ij* 1 

-04 

FT! 

627 

954 

26643 

26595 

26(02 

293J9 

2260 




+03 

1' * 

659 

221 

35251 

35540 

30044 

34772 

2BJ9 




+03 

1 A-i 

745 


134J5 

hub 

13442 



45 

Ah 



-14 

—03 

1937 

1294 

735 

550 

Pri 



57274 

3012 

m 

mm 


!•' -.JL 

BTT r 

-26 



Ed 

LlAJ 



> A I 


51 




59 

g_ .|_ i | i ■ — 1 | 


p li 

P53 





.1 




■ r ' jht'", TTTfnmraraGl 


+22 

’ 

659 

— 

25L93 

24106 

27320 

M 

2023 

25481 


^ m . 1 

Tttl 

+25 

3750 

730 

-292 

27779 

27435 




-12 


953 



r i 

1. VI 


29690 

2W4 




+Ol7 


6.76 

_ 

26071 



2MB 

25749 




+27 

' 

211 



O-.'.'l 

i.yj 



18.44 




+25 

12V 

530 

3248 

r<j 


+21 

Cj 

39731 






540 

_ 

vast 




36520 




-26 

532 

330 

2532 

4Nfl 

I I 

T ' 

4SLS9 

46589 . 

70 



+21 

1739 

643 

543 

»V J J 

FvTrl 


r '. L ’. - J 

11640 



ST7? :-i 

-05 

fiSl 

535 



30533 

It*r4 

hH 


30633 

21727- 



UU3 

-04- 


739 

745 

39075 

3047 

91 


35336 

-02 

rti 

294 

278 

35595 

3BM 

35U5 

3 MB 

4350 

99 



-25 

: — 

576 

"**- 

34596 

u 

faoU 




-FIXED INTEREST 


HBCE 

(N9XC0 

VM 

Jure 

- 9 . 

£& 

“ST. 

. Tee 

B 

od oft 
*te 

■« 

tote 

| 



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- 



4 




-416 

11239 

, ^ m 

5JB 




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■ 

544 

K 



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-M6 



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a 

4 


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BOB 

— 

630 

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ED 



NEW HIGhS AND 
LOWS FOR 1982 

. The lahowlng quotation* In the Share 
Information- .Service Yesterday, attained new 
HI ore and Lows for 1912. 

'NEW HIGHS (60) 

. AMERICANS (1) 

Brunswick Cron 

HUIforeuet ® 

„ , BEERS (S> 

B ulmer ch. P.) Whitbread A 

Bartonwood Young Brew A 

Greene King 

BUILDINGS (61 

FaSrcteoab Construct Tllbory Groan 
Marshall* Halifax What! I ns* 

Tarmac Wilson (Connolly) 

„ CHEMICALS (1) 

Stewart Plastics 

STOKES (2* 

Brawn (N.) Steinberg 

ELECTRICALS fSI 
AB Electronic MK Electric 

Fame! I Elec Scholes EG. H.» 

Ferranti 

ENGINEERING (6) 

Everod Senior Eng r 

Jackaon (J. H. B.) Turriff 

Peo I er- Harnrz lev Williams CW.) 

•FOODS («l 

A mine Soft Drink* Glass Glover 

Barr (A. 0.1 Matthew* (R> 

INDUSTRIALS 114) - - 
Asplied Computer Halma 

Bath and Portland Rolfe and Nolan 

Black (P.1 Standard Firework*. 

Chamberlain Phlpp* The Times Veneer 

Cole Group Utd Parcels 

Exeel Valor 

Ferguson Ind Vlnten 

INSURANCE (TI 
Legal and General Sun Life 

Miner 

. LEISURE (It 

Samuelson 

NEWSPAPERS f2> 

Portsmouth Srdlr-d Rontiedot K Paul 

PAPER ret ■ 

Chapman Ind* LCA 

Geer* Grots 

TEXTILES (1) 

Coortauld* 7pcOb 

TRUSTS Ml 

ArchlmedM Inc coulty Inc 

Channel Island! Cap London Montrose 

OVERSEAS TRADERS (1> 

Steel Bros 

NEW LOWS (44)' 

- AMERICANS (2) 

Bankers NV Bend be Crpn 

CANADIANS tt) 

Trans Can Pipe 

BANKS (1» 

Manson Flu 

BUILD INKS (1) 

Leech <Wm) 


nOR^O) 


Comb Eng IHeriaraet 

Fine Art Devs __ 

ELECTRICALS CD 

BSR Thortl EM! 7peCiw 

Elec Rentals 

ENGINEERING <31 

Brasfchoiiie Spear and Jackson 

Elliott fB.) • • 

FOODS (S) 

Cullens RHM 

CuUeos A 

INDUSTRIALS (11) 

Barrow He p bu rn Hawthi 

Cape Inds Howard Tenens 

Duple Int Man SMp Canal 

Electralux Sangers 

Enro Ferries Soring Grove 

Francis Inds 

PROPERTY m 

Trust Secs 

OIL AND GAS (4) 

Brunswick Flair Res 

Double Eagle Warrior Res 

MINES (11) 

Charter Cons Partnga 

'Cots Gold Rehls RTZ 
De Beers Dfd Vuttan 

Haoma Wetkom 

Metre mar Western Mining 

North B Hill 


RISES. AND FALLS 
YESTERDAY 




British Funcfa 
Corpns. Dorn. & 
Foreign Bonds 

Industrials 

Financial & 

preps. 

Oils 

Plantations -. — 

Minas 

Others 


Totals 


RttM 

T«lk 

Same 

2 

74 

10 

«' 

20 

47 

T78 

268 

803 

n 

* 132 

an 

It 

43 

as 


3 

20 

22 

67 

70 

a 

31 

62 


■ 

■ 

34t 

642 

1481 



Allied Irish Banks 
Limited 

Allied Irish Banks Ltd. 

. announce that with effect 
from dose of business 
on 9ifch June 1982 
their Base Bate 
is reduced from 
13% to 12i % 


Base Rate Change 

BANK OF 
BARODA 


Bank of Baroda announce that, for balances 
in their books on and after 10th June, 1982 
and until further notice their Base Rate for 
lending is 12£% per annum. The deposit rate 
on all monies subject to seven days’ notice of 
withdrawal is 9J% per annum. 


Bank of Ireland 

announces that with 
effect from close of 
business on the 
10th June, 1982 
its 

Base Rate for Lending 
is reduced from 

13%to12i% 

per annum 

BanfcgFlregaoci 



Standard Chartered 

announces that on and 
after 9th June, 1 982 
its Base Rate for lending 
is being decreased from 
13% to 12 \cfo p.a. 

The Interest rate payable on deposit accounts 
subject to seven days notice of withdrawal will 
be decreased from lO^^t to 9£9& p.a. 

. The interest rate payable on High Interest 
deposit accounts subject to twenty one days 
notice of withdrawal will be decreased 
from to lOj# p.a. 

Standard Chartered 

BankPLC 


-I \?1- 

' * l 


I 





















































Companies 
nd Markets 


CURRENCIES and MONEY 


financial 'Times Tuesday; Jjae; 


FT UNIT TRUST 


iTW&ii 


Dollar firmer 


THE POUND SPOT AND FORWARD 


The dollar continued to 
improve in currency markets 
yesterday as Middle East tension 
increased and Euro-do liar rates 

showed a firmer trend. Sterling 
eased against the dollar, but 
improved in terms of major 
European currencies to finish 

unchanged on balanoe- 

The Belgian franc fell below 
the Italian lira to become the 
weakest member of the European 
Monetary System yesterday. 
This was despite continued inter- 
vention by several European 
central banks and was more a 
reflection of renewed weakness 
of the French franc rather than 
renewed pressure on the 
Belgian currency. The French 
franc stowed a very sharp fall 
■wtthh* the system, slipping below 
the Irish punt despite assertions 
bv French President Francois 
Mitterrand that France remained 
firmly attached to the EMS. This 
was in response -to continued 
rumours that the French 
currency may he devalued or 
temporarily detached from the 
EMS. 

DOLLAR — Trade weighted 
Index ll?-0 against 116.6 on 
Tuesday and MML5 six months 
ago. Three-month Treasury 
hills 12.15 per cent (10.23 per 
cent six months ago). Annual 
Inflation 6.6 per cent (6.8 per 
cent previous month) — The 
dollar rose to DM 2.4150 against 
the D-mark from DM 2.4050. but 
was below its best level of 
DM 2.4 ISO in a market showing 
sharp fluctuations. It rose to 
SwFr 2.0575 from SwFr 2.0435 
and finished at its highest dosing 
level against the Japanese yen 
since April 1980 at Y248.80, up 
from Y246.90 on Tuesday. 

STERLING — Trade weighted 
index 90.9 unchanged from noon 
but down from 91-0 at the open- 
ing compared with 90.9 on Tues- 
day and 91.7 six months ago. 
Three-month interbank 1213 per 
cent ,(142 per cent six months 
ago). Annual inflation 9.4 per 
cent (10.4 per cent previous 
month) — Sterling fell 80 points 
against the dollar to close at 
Sl.7735-1.7745, having traded in 
a fairly narrow range of $1.7710- 


$1.7800. It rose to TM 42850 
from DM 42775 against the 
D-mark and SwFr 3.5525 from. 
SwFr 3 .0425. It was also higher 
against the French franc at 
FFr 1U.7 from FFr 111175. 

D-MARK — EMS member 
(strongest). Trade weighted 
index 123L9 against 123.7 on Tues- 
day and 122L3 six months ago. 
Three-month interbank .9 J 5 per 
cent (10.625 per cent six months 
ago). Annual inflation. 5.3 per 
cent (5.0 per cent previous 
month)— The D-mark lost ground 
against sterling and the dollar 
at yesterday’s fixing in Frank- 
furt, The dollar rose to 
DM 2.4152 from DM 2.3888 
despite S54_lm sold at the fixing 
by the Bundesbank. Sterling 
was higher at DM 4.280 from 
DM 4.2760 while the Swiss franc 
improved to DM 1.1779 from 
DM 1.1743. Within the EMS 
the French franc remained weak 
at DM 38.27 per FFr 100 from 
DM 38.46 and the Belgian franc 
was also lower at DM 5-290. its 
floor level, and down from 
DM 5.293. 

BELGIAN FRANC — EMS mem- 
ber (second weakest). Trade 
weighted index 95.1 against 
95.0 on Tuesday and 104.7 six 
months age. Three-month 
Treasury bills 14J per cent (14} 
per cent six months ago). Annual 
inflation 9.5 per cent (8.4 per 
cent previous month) — The 
Belgian National Bank spent the 
equivalent of BFr 11.4bn last 
week in support of the Belgian 
franc, according to figures 
released yesterday. This was 
Sharply up from the previous 
week's figure of BFr 6.2bn and 
is the heaviest, intervention in 
one week for two months. How- 
ever the Belgian franc bas 
remained weak within the EMS. 
At yesterday's fixing in Brussels 
the dollar rose to BFr 45.66 
from BFr 45-13371 and sterling 
was higher at BFr 80.9575 from 
BFr 80.S2. Although the D-mark 
slipped to BFr 18.8992} from 
BFr 18.90 and the French, franc 
to BFr 7.2440 from BFr 7.2710, 
the Belgian franc was placed at 
the bottom of the EMS. 


■pwd Cte— Qna month 

1.7710-1.7800 1.773&-T.TMS 022 OX&TtHa 
2-2300-2X440 £2420-2^430 O.SS-O.SBc tUx 
4.71V4J5»i 4.73^4.74*, .17.-1** P"» 

80JMK81.10 a0.70n0.80 20- 30c dis 


U.S. 1.7710-1.780 
Canada! 2J300XXW 
Nethlnd. 4.71V4J5»i 
Belgium 80X0*81.10 
Denmark' 1 4XM 4-S9 
inland 1.2920-1-238 


1 .2320-1-2380 1-2360-1.2330 
426430 UPUI 


4.73^4-74*. . 17.-1 V? pm 

a0.7OS0.80 30- 30c die 

14JEBV14Je*, tPrT^eradto 
7X360-1X330 0 . 65 -O. 76 P dis 


1 **-1pf pm 


Portugal 129.O0-13OJM 129.40-129.90 10O-370C dts 


Spain 

Italy 

Norway* 

Frqneu 


190.10- 191 j 40 190X5-190.46 40-60c d» 
2X58-2X88 ZJgS-13t8 20-23 lire dls 

toxc-wxq toxs-ioxt i-iv»re dts 

11.10- 11X0 


Smdad 1032-10.80 
Japan 43044« . 
Ail atria 30 .00-30. 2S 
Swttz. 3X3-3.604 


10-86-10.87 l-l»«ora dt* 
V1.16V11.17 1 * 23V26VC die 
10.S4-1Q.K VI \ore dls 


441-442 - 
30JMM0.10 
3.841. -3. 65V 


2.30-2.05/ pm 

13-3‘jtiro pm 
2V-2VC pm 


%■" T hree 
• pA ' muiiUn 

-1.83 0.93-1. Q3dls ■ 
- -402 2.85-2.758 is - 

4.12 4V44 pm . 
*— 3.71 73-83 dls - 

-3.77 13V204dk ■ 
. -S 04 2.06-2. 23di. - 
330 4V3V pn» 
—21.75 315-a90dis - 
-3.15 190-230 dls • 
>-10.90 644-684dis - 
-1.62 SVK. dis ■ 
>-27.13 a3V47Vdis - 
-1.21 2V3V dis * 
5.91 S -45-6.15- pm 
4.49 32-25*3 pm 
8X1 7V-6V pm 


Belgian rats Is for convertible franca. Financial franc 88.-iO-88.50, 
Sbc-montb, foreran* dollar 2.0&-2-15C dis, 12-month. 3A6-3.6Ss? dVs, . 

THE DOLLAR SPOT AND FORWARD^ 



E-'f. T - r ^. j ' 4 ^ | 



■eseaea Jg ; ' 










Jan>9 sp reed -Close Qns month 

UKt 1.7710-1.7800 1.7735-1.7745 0224752* die 

Iralandt 1^330-1-4410 1-4390-1.4410 0.664h55c pm 

Canada 1X575-1.2645 1XS35-1X840 0.27-0.30c dh» 

Nethlnd- 2.6580-2.6740 2.6670-245700 1 .35-1 .2Sc pm 

Belgium 45.45-45.70 45.51-45.63 ' 4-7c dis . 


% Three • % 

P-s- months p.a. 

-103 0 .83-1 .03d Is -2.21 
5X2 1.75-1. BO' pm 4,67 
—271 0.68-0 72d» -2.22 
6.98 4.12-4.02 pm 6.12 
-1-45 15-18 dis -1.45 


Denmark 8.1880-8X250 8.1950-8X000 2.15-2.40or» dls -323 6.2S-S.75dla -268 


W. Gar. 2.4000-2.4180 2X146-2.4156 
Portugal 72X0-73X5 73X0-73-26 


1,13-1 .08pf pm 
5O-200C dls 


Spain 

Italy 

Norway* 

Francs 


107.10-4d7.ffi 107X5-107.40 20-25* dis 


1X28-10354 


5.49 3.593.54 pm 5.90 
-20.51 150-525dl* -18.46 
■"2.51 85-95 dbt * -3X5 


Kri 

ftj 

Rr| 

iKl 




94-104 lira dls -9.03 28V30Vdi» -8X5 


6.1170-5.1330 5.1180-8.1230 0-6£W».20ora pm 0.78 0X043X0 pm a 44 


6X560-8-3200 6X850413000 


Swede* 5X40045X570 ' 5X420-5-9470 0X0-0X0ara pm 


-23.85 22-23*jdIs -14.47 


0.81 2.00-1X0 pm 1.28 
Japan 247X0-248X0 248.85-2*3.95 1.84-1 X8y pm 7.71 '4X5-4.85 pm 7X7 

AuatiH 16X0-17X1*a 16X0*2-15X1 *x 04-a4gro pm - 6.28 28-25 pm . 6.20 

Suritz. 2X480-2X600 2X570-2X580 1 .75 -1.07c pm 9X7 5.05-4X7 pm 5.74 

tUK tetri Ireland Vra quoted IP U.S. currency. Forward omniums and 
discounts appbj n tin U.& dollar and pot to th« individual currency,, 





F+,i'HMgi 

MEl j: 


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f- ! • j, V [ MfcSWaMfcWM ; 





■ 

L_M p4i»t— ej -"-ffif * 



CURRENCY MOVEMENTS CURRENCY RATES 


Bank of. Morgan 
June 9 England Guaranty 
index Changes* 

Sterling SOX —38.8 • 

U0. dnlar 117.0 +0.8 

Canadian dollar.... 88.3 —20.3 

Austrian schilling- 117.3 4-26.4 

Belgian franc-— '< S5.1 —1.9 

Danish krona r. ' -830 —13.6 

Deutsche mark— 123.fi 4-47.3 

Swiss franc. 144.6. 4-S5X 

Guilder 116.0 4-81.7 ' 

French franc — 78.7 —15-2 

Ur*. 64.1 -68.3 

Yen . 133-6. 4-273 

Bssad on trad* we ight s if changes born 
Was hing ton ag reem e nt Ds n e ei bsr, 1871. 
Bank of England Index (be sa ev e csg s 

1805-100)7 a— 

OTHER CURRENCIES 


.'iBank | Special I European 
June 9 rata I Drawing | Currency 
3 [ Rights I units 


VSgZ: 


Sterling. I — >0.628277 0.569101 

UX. I 12 ri>ll Q 38 0X91666 

Canadian 6..H5X7! -• 1X5086 

Austria Suta.i 63^ 18X153 16.8913 

Belgian F 14 I 60.7004 45.8951 

Danish Kr.J 11 9.10242 8.10316 

D mark. I 74 2.68181 2.39413 

Guilder. J 8 . 2.97029 2.85016 


Austria Soh.i J 6a* 1 18.8153 

Belgian F 14 1 60.7004 

Danish Kr.J 11 9.10242 


D mark. 74 2.68181 2.39415 

Guilder. 8 . 2.97029 2.85016 

French Fr.... oig- 6.99657 6X6579 

Ura_— 19 (1479.32 1320.62 

Yen —.V. 6Is, 275.166 246.652 

Korwsn. KrJ 9 6.80558 16.07334 

Spanish PtsJ 8 1 119X76 i 106.663 
Swedish KrJ 10 i 6.61348 5.92271 
Swiss Fr.._.i 5!g; 2XB296 I 2.03568 

Greek Dr'ohJ 20i*i Nia' i65.62B7 


- CS/SDR for June & . 1.40636. 



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Canadian Dollar 
Belgian Franc 100 


FT LONDON INTERBANK FIXING (11.00 a.m. JUNE 9) 



ami' 

KiiJm 



6 months U.8. dollars 


3 months U.8. dollars 


bid 14 IB/IB I offer 15 1/« I WdlSIrt offer 151/4 


The fixing rates are the arithmetic means, rounded to the nearest one- 
aixtesntiv of the bid and offered rate* for Skfen quoted by the market to five 
reference banks at limn each working day. The banks are National IWeetminsmr 
Bonk. Bank of Tokyo* Deutsche Bank, Banqus National* da Paris and Morgan 
Guaranty Trust, • * 


EURO-CURRENCY INTEREST RATES (Market closing Rates) 


UX. Canadian Dutch Swiss < French 

Sterling Dollar Dollar Guilder Franc | D-mark Frano 


12 5g- 137a 135fl-137a 





Danish 

Yen 

Krone 


Short term. 

7 day's notice. 

Month i - 

Throe months. 
Six months. 

One Year. 


12(*.12« 

1278-121* 

124,-12Tu 

12V127S 

13*-13A 


SDR linked deoosits: one-month 14V15 1 * per cent; three months 14-14*» per conn six months 13V14 par cent; one yser 13 s u*13 il hi per cam. 

ECU linked deooeits; one-month 16V-17 1 . par CBnt; three months 15»t*-15*» per cent; six months 14VW« par cent: one year I3“i*-14 , i* per cant. 

Asian S (closing rates in Singapore).- one. month U’rU'i per cent; three months 14V15 par cant: »x month per cant; one year 13-15^ per 

cent Long-term Eurodollar two years 15- 15V per cent three years 15*-15H per cent: four years 15V15V par cent; five years 15V.154 par oenc nominal closing 
rates. Short-term rates era caH for U.S. dollars, Canadian dollars and Japanese yen: others two days' notice- 

The following rates were quoted for London dollar carHficatea of deposit: on swtKJnth 14.10-14>20 par cent; throe months 34X3-14X6 per cenO six months 
14.55-14.65 par cent: one year 14. 55-. 14. 85 jjot cant. 


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MKta* (Mt Treat Mansgare (s)(g) 
ftoadSt-AM v BloiiiMdSL,B». <04323014. 


MONEY MARKETS 


London rates firmer 


UK clearing bank base lending 
rate 12k per cent (since 
June S) 

Short-term Interest rates were 
slightly firmer in the London 
money market yesterday, with 
most interbank periods rising by 
atbout A per cent. 

In ibe morning the Bank of 
•En gland forecast a shortage of 
credit in the region of £100n>, 
but -this was revised to £2 00m at 
noon, and to £250m in Hie after- 
noon- Total help provided by the 
authorities was £26Qm, made up 
<rf £164m before lunch and £9fon 
in toe afternoon. 

The morning's assistance was 
by way of £19m bank bills in 
band 1 (up to 14 days maturity) 
at 12| per cent; £G4m bank bills 
in band 2 (15-33 days) at 12 i 
per cent; £3m Treasury bills in 
band 3 (34-63 days) at 12| per 
cent: and £78m bank bills in 
band 3 (64-Si days) at 12} per 
cent. 

In toe afternoon toe Bank of 
England bought £5m Treasury 
bills in band 3 at 12* per cent; 

MONET RATES 


£l5m bank biUs in band 3 at 
12| per cent; £15m Treasury bDls 
in band 4 (6491 days) at 12J 
per cent; £12m local authority 
bills in band 4 at 12} per cent; 
and £49m bask bills in band 4 
at 12} per cent 

In toe interbank market over- 
night loans opened at 121-13 per 
cenl; and traded (between 12-13 
per cent for toe most part, 
before falling sharply, to 1-2 per 
cent at toe close. 

In Frankfurt call money was 
steady at around 0 per cent, 
despite fears of a liquidity 
shortage next week. On Monday. 
DM 4J2bn will be drained from 
the money market as a 28-day 
securities repurchase agreement 
expires: Large corporate tax pay- 
ments fall due next week, and 
there will be no renewal of re- 
purchase facilities announced by 
the. Bundesbank today, because 
the market is closed for a 
religious "holiday. Unless farther 
liquidity moves are made public 
tomorrow central. bank aid will 
be only DM 6.1bn next week; 

In Amsterdam there .were also 

LONDON MONEY RATES 


suggestions that toe Dutch 
central bank may provide a new 
special advance to toe mosey, 
market early next week, since the 
current deficit of about FI 4bn 
compares with formal . quota 
allocation of FI 3.4b n. Interest 
rates are not expected to change 
significantly in the near future, 
unless there is a sharp move- 
ment in U.S, rates. 


3-mth EURO- 
.SWISS FRANC 
L INTEREST RATE 


•3% f 


M 1 98 2 


EUROCURRENCIES 

French 
rates ease 

Boro French franc interest 
1 rates declined yesterday, despite 
toe weakness of toe franc in spot 
foreign exchange trading. Seven 
day funds were around 35-50 per 
cent throughout, and finished at 
37-39 per cent, compared wato 
50-70 per cent on Tuesday, while 
longer term rates showed smaller 
mixe d Changes. This led to an 
Improvement of toe French 
currency in toe forward market 

Eurodollar rates opened very 
firm, but abort-term rates eased 
back later in the day. . Eu co- 
sterling and Euro Swiss franc 
rates Showed a firm trend, and 
D-mark rates were also slightly 
higher. Despite toe Sharp up- 
ward movement hi Swiss rates, 
toe Swiss franc's forward pre- 
mium against the dollar 
widened, as toe Swiss unit lost 
ground in toe spot market For- 
ward premiums for toe yen 
against toe doHar also widened 
as Euroyen, rates held steady, 
but toe dollar rose against toe 
yen for spot, delivery. 


For Britt* Ufi affira ms Mbscs deft Um. 
Bmn SMptey A Co. Ltd. (slip) 

Hartmfc H », Hapnt* »x St 0444458144. 


SEW. 





a®, CtaMRSids. ECZV6EU. 


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01-6234200 


<04066060 


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Tredei Wm Wt lhiit - 

MO.WoodSlrwt.ECX. t .mMStBTL 

TUUTfost 72L5J'j 

ThuMttanfic'fetel Gao. Secs. fo)-(0 

91-99. NM Lindm fkL Cteii%*x4. 024MJM1 




Ltd. ’ 
71-588 286* 




(AcoM-IWb) 


HO-Tmt 

Mfkae Court,! 
IWWW— — — 


pnUL <■) (*) 

Xnm. Q306B87766 




NEW YORK 

Prime rate — 

Fad funds (lunch-time)' .. 
Treasury bills (13- weak) „ 
Treasury bills (2S-umsk); „ 

GERMANY 

Lombard j - , 

Overnight ran 

One month 

Three months 

Six months 

FRANCE 

Intervention ran 

Overnight rets 

OnO month ..... M 

Three months 

Six months , - 

JAPAN 

Discount rate - , 

Call (unconditiaiMiy v„.„ 
Bill dissauiu (ttimfl-mamh). 


18-1W- 

13V13* 

12.13 

.12.19 


) Sterling i 

fcertifioato Interbank 
of deposit i 


Local [Local Auth- Finance | iDtoeount! Eligible I Fine 

Authority negotiable House Company! Market Treasury Bank i Trade 

deposits ; bonds Deposlta Deposits ’ Deposits: BIUsX Bills* Bills* 


Carr. Setaa IMt Tree! I 

57/61 Princes St, Mrettertra 


Cbartaco Ctaritfes HJK FamtU 

15, Msorett^Luotaj, ECZ. lOMMsm 

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Charities Official Invest, fired# 
77Lse4MW*,EC»lDB. <0,-5881815 

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fttoaa Hails Admta. LU. (gKx) 

57-n W wcegSt, MgndiesUf. 661-2H5685 

tel fifc»USte (B7J H7^i-afl 439 

OgRMm Pwvetnl Unit Trnat bbigret- te> (ri 

4fl«ytS4Hsshy<MTteMes 0«n2Ceffi 


Overnight : — 

2 days notice^ — 

7 days or — 

7 days notice™ — 

One month 124 % -124 

Two months. „j 12^-12^ 
Three months. 12 i«- 12 Gs 

Six months 123«-128fl 

Nine months_ 129«-12 Gb 
O ne year i2a»-Z2se 

Two years. — 


129«-12Gb 

12VZ86S 


126*. 13 

1234-12 7 R 
1234-1278 
1278-13 : 


12 34-12 T| — 

127s - 


127a 15ia-l3i t 

— ISiflS 

123 4 1311-125* 

12 Ta 12 <8-1173 

— 1318-1254 

125* 13-126e 

18fe — 


— 1234-13 


7-123|l — 


121s liaA-lSSs 12-1$ 
12 U- 134s i Ufo 1 ZJb- 18 « 

12-12 M 1214-12 A 12* 

— I — 11 24- 12 


locsl authorities 2nd ffnsnes houses seven days" nodes, others seven days flxsd. Long-term .local authority mortgage 
rates, nominally three yaa» 13*2 per cent; four years 13\ per cent:. five ysa» IWi per cent * Bank bill rates In table 
are buying rates for prime paper. Buying rates for fouhmontb bonk bills , 12 *n- 12 i» per csnC four months trade bill* 
124» per cent. 

Approximate selling rates for one month Tmesnry bills 1ZV-TA per cent; two months.. 12W2** per cent; three 
months izs-l^^u per pant. Approximate sailing rate for one month bank 1 bills per eenti two months 12 s * par cant 
and three months 12 T n par cent One month trade bills 13 per cent two months 12» 4 per. cent; three months lift per 
cant. 

Fin an co House* Base Rats* ffpubflshed by the Finance Houses Association) 1* per <xnt from June 1 1382. Condon 
bnd Scottish Clearing Bank Rates /or. landing 12*» per cent- London Clearing Bank Deposit Ratos for sums at seven 
days notice 9 1 * oar cent. Treasury Bills: Average wndsr rats* of discount 12.6675 per cant. 

Certificates of Tax Deposit (Senas 5) 13 par cant from June A Dapotita withdrawn tor cash IDS' per cent. 



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-S3 «3| - 44, fitaM Khisy Sg, WC142RA (&62MK3 

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H’t.-Sd “ ,83:8313 


CoffiMmtfM Funds Mgt Ud. fo> 

Cref yeaeet llaS Tst. Mfrt. LU. 
Bsddmte>y,lsadHEC4N88a 0 W««64 
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Emigrate to \ 

Tejfbnd 

i0952 613131 



Financial Times Thursday ^10^19^ 


FOOD, GfiOC ERIES—Cont 


















































































































































































315 


NOTES 



Unless otherwise brtcated,pfc» art net dMdemfc are in pence art 
deoort imMons are 25p.Eitltimtedpriee/eartil«WJ reties end cowre aw 
Based on latest i— al reports art acsowds art, where portbir, aw 
updated on tatf-yearfy figures. P/Es aw calc u lated on “net" 
distribution taw, earning pv daw being computed on profit aftar 


trtkate 10 par cent or mow difference K afcntated.on “rtT 
dtatfooBon- Gown aw bared on “waahmn" dtttrtbrtom tMs 
ooiapa m grab dMdend easts to profit after taxation, naAnOas 
exceptional profttsflosses bid inctudiig estimated extant of offsettabie 
ACT yields are based oa middle priew, aw grt®, adjusted » ACT of 
30 per cent art altae for nine of declared distribution ad rights. 

• ‘W Stock 

• MglB art Low narked thus taw been adjusted re allow far ritfds 
tanas fir oriL 

f Interim sfaoe wanted or resowed, 
x Interim once retimed, passed or deferred. 

# Tax-free to non-residents on a ppilcat l nn . 

* Hat ts or report a w a it ed. 

* HSU- DM feted oa Sock Exchange art company not rt#dedta 
same decree oi wgtiation as listed securities. 

ffMifninln Art 1A3T3J. 

* Prim at time oi awtiato 

f krtctert dMdend after pending scrip artfor rights taae: cowr 
relates to previous dividend or forecast. 

4 Me r ger faM or reorganisation in progress. 

4 Not comparable. 

t Swe rterim. retimed final tailor retimed eandogs Endeared. 
Forecast d Mdtu d: cover on eanriags updated by latest bderiat 
statmem 

t Covet adorns for mo re rri onol dares not now ranking hr dividends 
or rantdog mdy for restricted dMdend. 
it Cowr does not allow for dmres rtikliaQr also rook lor OMtadtt 
a fotme date No P/E ratio usually provided. 

II No par value 

«f TIM nosed on nwnnpttaTriMaryBa Rate stays unchmtgrtnnfil 
BtfoUy oitaka Tax free, b Fanes based oo prospoctos or other 
official estimate c Cents. 4 DMdeod rate paid or papfate on part of 
cartel, cover bared on dividend on ful capital, o Redemption yield, 
f Flit yield g Assented B iv tdend tad yield, h Assumed dMdend and 
yield after scrip taae ] Payment from capital sources, k Kenya. 
■ Mortal higher than previots total, n Wjftts issue pending. 
% Eandngs based on preKanary figures. % DMdend and yieid exdodt a 
spedai nowot t Indicated dMdtnd: ewer relates to a reviews 
Addend PIE ratio based oa latest amaai earn mgs. a Forecast 
dh wd emt care r h a red an previous year’s oareingsv Tax free up to 30o 
In rock a Mrida n d w i m in oatcessof 100 times. y Div i dend and yieW 
based on merger terms z DMdeod art yield include a special paysmak: 
Cover ooas not apply to special payment A Net dMdend art yield. 
B P reference dmdeno passed* deferred. C Canadtan. E Mtadmuro 
•endet price f Dividend and yMd based on prospectus or other 
offleta estimates rot 19KM4 S Assumed dMdeod ana yield after 
oertiog scrip anti* vgbts issue H DMdend and yield based n 
prospectus or other o ff ici al estmwtes Mr 1982. K Figures bawd on 
prospectus or otiwt official estwat e s for 1961-82. M Dividend art 
yreid cased n prospectus or other official estimates for 1483L 
M OMdert reo yiefo oaced no prospectus or other officW estimates 
fm 1062-83 P Figaro eased on pwfoodre or other official affimalta 
for 1982 a Gross T FJjwrro resumed Z DMdend total to date. 
Abbrev i a ti ons «d ex dMdeod; b ex scrip taae; r ex rights; ■ « 
aR; ft ex capital titiribut taL 


12.9 “Stew* I md “ttghts** Page 43 

TUt scrricak avaBaMo bran Campatqr dealt In m Stock 
i rvrtta i BU tftroi ' Bfum ttf* tfn^ yfa pfowforaftenfC&OD 
K? par hbbub far nek nwHi 
































































































































































































43 




Is 

. v - r'-.--' 3 . 




f*r« •*:*•:•*:.! 






Thursday June 10 1982 



JUNTA HAS TROUBLE PAYING FOR ISRAEL AND ARAB AID 


Libya sends Argentina arms 


BY DAVID TONGEv DIPLOMATIC CORRESPONDENT 


parts, as well as. of Soviet-made 
Sam 7 anti-aircraft missiles. 

. Britain has protested to Spain 
about the use made of Las Pal- 
mas airport The general view 


ARGENTINA is believed to toat Israel continued to be one Military experts say the 
have received up to 300 tons of of the main sources of weapons cylinders could conceivably 

military equipment from Libya for the Argentines.- have been aircraft drop tanks, 

in the past 10 days. British missions abroad have -which -worry British forces 

This month about 10 Boeing stepped up efforts to ensure almost «s much as missiles _ „ . _ 

707s each capable of carrying that the tightening noose round because one paid of tanks ex- in London seems to be that the 
30 tons of cargo, have flown Argentine troops in Port tends the . Argentine planes’ murky nature of the arms world 
from Tripoli, Libya or Benghazi Stanley is backed by a virtual “foiter time” over the Falk- means that supplies to Argen- 
ts Buenos Aires, according to arms blockade of Argentina. lands by up to 20 minutes. tin a can be severely held up 

officials in Latin America, The Israel has frequently denied. it was Israeli-made, drop but not altogether prevented, 

usual route has been via Las making fresh arms contracts tanks that caused a stir in Andrew Whitley writes; 
Palmas in the Canary Islands with the Argentines since the South Africa three weeks ago Brazil is not prepared to pre- 
and Recife Brazil. Falklands crisis -began. ■ . ■when one newspaper reported vent her airspace and airports 

But the Argentine junta has But on May2 l a^Bo eing 707 that they were being picked up b*ing used as transit route for 


Reagan 

pledge 

pleases 

Germans 


THE LEX COLUMN 









been running into difficulties in belonging to Peruvian Faucett from Cape Town airport packed the Argentine re-supply effort 
financing urgently^ needed arms Airlines carried 1 ^gar-shaped j n crates labelled “tractor senior Brazilian official 

said 


yesterday; “ If Britain 


By Reginald Dale in Bom 

PRESIDENT REAGAN yester- 
day began his West German 
visit with a strong commitment 
to continued American defence 
of Western Europe. 

He made it clear that his 
Administration would firmly 
oppose any move in Washington 
to reduce the level of U-S. 
forces. 

Mr Reagan’s address to the 





Hoare Govett has moved wnth. 
dazzling speed to take advan- 
tage of the Stock Exchange's 
ruling — made only last week — 
that increased the maximum 
outside 'shareholding in a 
member firm from. 10 to 29.9 
pea* cent In so doing it may 
have uncovered the potential 
for the Stock Exchange to be 
em b ar rassed by its own 




• Moreover, -WestjandVcnA ^rt^ 


Inaei; fell 6.7 . to £873 ■-.^StSSfSSSS^- 

mmm—mmm—mmmi' boost its StOCfc levels. V, 


_ _ labelled “tractor 

from Israel. In Zurich yester- cylinders about It metres in parts” 

day the Credit Suisse bank s-rid diameter and 4 to 4J metres Western officials are still in- wants to stop Argentine air- m ^ e 

that on Monday it turned down long from Tel Aviv via Las vestigating reports that Buenos craft it will have to go to the German parliament was con- decision. For while the Stock 

a rush request to confirm a Palmas and . Manaus, Brazil, to Aires has bought at least 24 UN Security Council.” . stantly interrupted by enthusi- Exchange contones to fight 

letter of credit for about $50 m Lima. surplus U.S. A4 Skyhawk jets Boeing 707s belonging fr» ast j C applause — much more tooth and nail against the 

between Israeli weapon maim- The cases were then loaded from Israel, as well as a Aerolineas Argendnas have during his Westminster imaging of .agent ' and 

facturers and a Panamanian on to an Aerolineas Augentmas number of Daggers. . been serviced by Varig, the speech on Tuesday — as be principal business in. UK secori- 

bank. aircraft. Peru is reported fa be help- Brazilian airline company, on responded to German anxieties ties, its new capital rules 

The Panamanian bank is A second such flight is ing the junta make up for the the way .from Libya. about the state of Nato and represent an open invitafioa to 

believed to have been acting on befieved to have taken place loss of almost a third its A senior Brazilian diplomat Amercian defence policies. fcm to increase their capital 

behalf of Argentina. Credit on June 4. original air force over the said yesterday that under no 

Suisse was disturbed at the The cylinders were carefully Falklands. circumstances would Brazilian 

number of phases in the Iran- bolted, into containers, which On May 31 Gen Basilio Lami authorities stop and search a 

saction, the sum involved, and makes those who saw them Dozo, head of the Argentine civilian airliner in transit to 

believe they were missiles. Air Force, said: “We have the Argentina, no matter what they 


the nature of the deal 

The letter of credit was 
reportedly in favour of Israeli 
Aircraft Industries, manufac- 
turers of both the Dagger 
version of the Mirage used by 
the Argentine Air Force and 
the Gabriel missile. 

British officials were deeply 
disturbed when told of the 
approach to the Creit Suisse, 
as ibis confirmed British fears 


suspected it might be carrying. 

The argument is primarily in- 
tended to refer to aircraft 
bound for Buenos Aires but 
could be equally applicable to 


Argentina has been looking for same operating capacity we had 
fresh Exocet AM39 missiles to on May 1.” ; 
replace the five which it is Military experts stress 
thought to have had when the Argentina’s, heavy need for 
hostilities began. spare parts to combat the cor- 

Ftve missiles have been fired, rosion caused by salt spray British carriers or _ aircraft 

sinking two British Ships. Arg- drawn in as Argentine pilots chartered by the British Gov- 

entina has also looked for fly low above the waves to eminent carrying equipment 

Gabriel air-to-surface Tnias Maa, avoid radar. and supplies for tire F alkland 

though none 'has yet been fixed Libya is thought to have been Islands, 
against British ships. a major source of such spare Falklands crisis. Page 3 


His most emphatic support 
from the assembled parliamen- 
tarians and government repre- 
sentatives came when he stated 
“we are with you, Germany. 
You are not alone.” 

The only sour note was struck 
by two former left wing mem- 


base in .readiness for the 
requirements of dual capacity. 

Security Pacific's stake in 
Hoare Govett will partly con- 
sist of existing equity-^which 
wilL help to fund' withdrawals 
by retiring paitnersr— but there’ 
will: also be a substantial slice 
of new money. Hoare 



The' position 'will look a. 

• ' more-healthy in. the. seCbnaX 
- when R-aqd D costtrcoujd _ 

. to £%n add the interest Mil may. 

? be only about £5ffl>,060; SoWest-'- ; 

land could well mate 3Slm pre<” 
v. tax. for the ifnli/yeac.:':- After ;*/! . . 

. 26 per cent tax jdrarge, th%. 

: \ woidd' be enotigh .to. c ovp£* ia ' y 

: . per ’ cent /increase ifae finai 

dividend about 3J tones.- Ga. 
that basis the abates, tm ohaty ^ . ** 

yesterday at U.7p s vwmdd.?i*fi J 


9.6 per cent— much aharejtfnfl,. 
Britito Aenwpace aM a. reflto 
tion. of . the ' ancertamT order 
prospects, . * ■*' - 


iZJsz&iXSiZi: *>•# **«& 

^-iTCToa* D5tsa liar STSi- 

Party, who at one point tried | I- 1 ?*. J" 1 ** *»■■■**.. stractirre of oti 

unsuccessfully to barrack Mr 
Reagan on El Salvador and 
whistled when he finished 


North Sea • - . ./ - / •- j> ■*> 

Sf North Sea operators :w*re 


same way as Hoare, toe ques- have (tisappointed tibiaSS^S 




Mitterrand to cut public spending 


Westland 




BY DAVID HOUSEGO IN PARIS 


PRESIDENT Francois Mi tier- istration would continue with Saying that France's rate was 
rand gave notice yesterday of the same policy and “maintain, to -remain in it and to help 
a further squeeze of govern- the same objectives.” He gave improve it. 
ment expenditure in an effort satisfaction to the radicals in simis of a further squeeze of 
to reduce the French budget the party by underlining pnblic expenditure came during 

policies on income distribution, 

“reconquest of the domestic 
market” and large-scale invest- 
ment to change the structure 
of French industry. 


(equivalent to 2.6 per cent of 
the GNP anticipated then), but 
has swelled since to an 
estimated FFr 120bn. 

M. Mitterrand promised no 


deficit 

Announcing the opening of a 
“second phase” of his admin- 
istration, he gave no bint of 
where cuts might fall — nor 
did be announce any new anti- 


natio mfl expansion, and in its 

SSS . ttons.aC dnai eg paea^ jnd jegBr ; - 

, STJi 7 hgv3r«:.a 

Outside the Bundestag, the 
peace movement” set off a 
siren, which was meant to 
represent the Implications of 
Mr Reagan’s policies. It 
sounded for over an hour before 
police managed to turn it off. 

Some 200.000 peace demon- 
strators are expected 
today, coming 

West Germany but . _ t _ 

other parts of Europe. -. -n^e idea of formrcg WnVs Tbe company confines itself- to 'Government: revenue 

The. organisers stressed yes- vnth a UK merchant bank or reiterating a profits forecast North *Sea fob .fibandalv 
terday, .however, that the investing institution was re- made in February, before the wat be ..betwemi £7.«m: .anib 


London before too long. 

The chodce of partner is 
interesting, too. Security 
Pacific was brought to the 
London market by Hoare. so 
there is a long-standing relation- 
ship, and it has perhaps been 


■. the changes are' 1 beniijfiid ’and • - 

answered before - they get to the t^m^i V-“ .• - - Up 

Kesdidiw Practices Court. ’ " 

the oil compames.i^ mkle^6i. 
v ing th eir diffi cuiti^. over tape 
tion or knythmg else, a heir - 
Westland’s interim statement study by stw*brokeis Scoti^Goff 


>t- :■ 


the most aggressive U.S. bank makes np reference to the Faik- Hanoock anderto 
ected to arrive in its approaches to-thebrqhing lands . crisis, beyond. : recoriting . of tbe tax- burden under 
.mainly from industry — within the limits of the "appreciation of defence^ the- coir^xanies now^ iterate. - ™ 
but also from U.S banking legislation. • chiefs for services- rendered. Scott Goff estiimtee iftaf^:rnr 4 ' ; 


M. Mitterrand’s firm declaration jS^buf Sd^tSr^odd' bl I demonstrations, though thnedto | jectedTut erf hand; that wodld *>egaa So iVseems £8Jbh.’-'7- "7 ; 

that the budget defldt mu st be a redistribution dn favour of | “““A* !l®Vl hav® afienated the UK customer go ftr at least, the expec ted ^ 

own estimate ,T of 

London 5 < X I 4.t _ wuen cave mituien me •wna.tew ■ . .... 


Nowhere in his remarks did 


inflation measures to bring ^ President mention 
France’s level of price increases - auste rity” or a devaluation of 
closer to that of its industrial the French franc, which have 
competitors. been at the centre of political 

The emphasis during what debate here in. recent weeks. 


of which he had set “We must ^ he clear ^ ^ be anti-Amencan. 

be strict and I expect it from servants wou id have . to Reagan went out of 2ns 

the government he said- contribute to the unemployment w3y to answer the concerns of 
On the basis *f M. Mitter- benefit fund. the demonstrators in his speerii 

rand’s estimate of a 2 per cent During the day. . the franc to the Bundestag, while con- 
growth. in real GNP — which weakened in Paris to a record tinuuig to promote existing U.S. 
was lower than expected — that low against the dollar .of 
would me 2*i a deficit of about -FFr 6.31. It also slipped to 


*hki 


was only the second news con- He reaffirmed, however, his FFr 107bn (£963m) this year. FFr 2.610 against the DM, close 

ference of his presidency was strong commitment to the The 1982 budget had provided to its floor within, the EMS. 

that his Socialist Party admin- European Monetary System, for a deficit of l?Fr 95bn French steel industry. Page 2 


Plessey may acquire Stromberg-Carlson 


BY GUY DE jON Q LUCRES 


PLESSEY is considering acquir- additional investment in re- 
ing Stromberg-Carlson, a search and development.- to 
medium-sized American tele- strengthen its competitive posi- 


communications equipment 
manufacturer, in a deal which 
could lead to Britain's System X 
electronic telephone exchange 
being marketed in the U5. 

Talks between Plessey and 
General Dynamics, the U.S. 
defence contractor, which owns 
Stromberg - Carlson, started 


tion after a spending cutback 
in the late-1970s. 

Stromberg-Carlson, which 
does not publish separate 
accounts, is estimated to bave 
annual sales of about $200m. 
It is believed to be operating 
dose to breakeven. 

Plessey, which lias half-a- 


Telephones and Cables. Over- of sales to British Telecom, has 
seals orders are being sought for performed stipngly id recent ^0^1 Europe. 
St but the U.S. bee not until ^ plen ifu 


policies on the need for a 
build-up of the West’s nudear 
and conventional forces. 

He spoke much of peace and 
the need to deter “war of any 
kind.” 

The President ' used the 
occasion to announce the out- 
lines of a new American pro- 
posal designed to break the 
eight-year-old deadlock in the 
Vienna negotiations aimed at 
reducing the level of conven- 
tional forces on r both skies in 


brokers feel that in- a ^ 

venture with a U% brokerage ^VLt-JKfLSStiSIS? of ^tikscrepaBcy cau be ^; :" V 
firm they might get eaten alive. p i ■ 76 ^ t0 “aienause. to. different a ssn m p tt kg - ? a w 

As tilings .stand. Security _ Judging fnra tile figures for .Given" the Treasury's > poor.mi •!••• 
Pacific may not exercise “tin- hAlr year to Mardi, tiiose . revemue^ ^ fcTeoastShg.rec6rdi,®& 
due influence” over Hoae: it orders-are sorely needed. Fr^ts sQgge^:\"ltaat-<.tiie.-1ai: r egtee 
is not even allowed g man on {gg W-alot. ih^'ca^S - 

the board. But the investment of companies; ip practice tto 

--perhaps £8m or so— is tiny SgJ^JL tiJe GoveriHiient is expectii^.. 

from the bank’s point of view _ " ^the context .of these figures, . 

it ^^OrdAoSVtjower ge prufcred.rtU^ f BSu. A: 

London brokers eqiaty) and at ^ ?_ hovencraft division. ™ ^ ? umirt fi ? a31 ri al year Into • 
can afford to take a long view. & is i it Se tJTreDS S : W. classified f . . , 

There is of course always the JSS? MdSS 'EMtS todaS- tio “- a ® insult The. Goyehj.; 'xffigsr 
danger in a broking business ^ ment has done vntually notidog'; 

“*• — - fte ^ 

tha '• —3 •. — , 1 — ‘IE. ' >. 


may walk out of the front door. 


The question now is bow fast ? e s ^ or ^ gI ™ T • ironically, ‘ffie 

rt.Pi* firrm. win ^ to ftM™ ** ^ R _.^ P costs, most}? tax structure 


recently been seriously con- 
sidered as a potential market 
However. Plessey believes 
changes in the U.S. telecom- 
munications industry, particu- 
larly the impending divestiture 
by American Telephone and 
Telegraph of its local telephone 
companies, offer attractive new 


the company’s £I11.4m pre-tax 
profit in its last financial year,, 
ended April 2. 

The company has accumulated 
cash and liquid assets of almost 
£240m, partly by disposing of 
some of its more peripheral 
business, and there has recently 
been speculation in tbe City 


other firm* will move to foHow “ 3 " wtraaiusuy .xax strucuure may . encourage, ! 



ment his 
reduction . 
weapons and a ban by both sides 
In intermediate range nuclear 
missiles in Europe. 


Tided edsting partne rshipe are Mo b " hi* "'ohrtoW S : 

prepared to. accept dilution, accelerated, but payments may could start to feel the pinch 
London firms need no longer be coming through more slowly, shortly. ■ 


Weather 


more than three months ago dozen subsidiaries to tfie U.S opportunities for sales of pub- for Ferranti - 




and are believed to have 
reached an advanced stage. 
Plessey is expected to decide 
next week whether to submit 
a formal offer. 

Industry experts value 
Stromberg-Carlson at between 


has already held talks with 
several other American tele- 
communications manufacturers 
with a view to establishing a 
local production base for 
System X. 

System X is being made in 


S50m (£27.8m) and $100m. It ‘Britain by Plessey, tbe General 


fie exchange equipment 
System X wouid probably 
have to be adapted to suit the 
U.S. market It is unclear how 
a decision to make it in America 
would affect existing produc- 
tion arrangements in Britain. 
Plessey’s telecommunications 


wouid probably require large Electric Company and Standard business, which consists mainly 


later this year. 

Plessey had declined to com- 
ment. but acquisition of Strom- 
berg-Carlson would reduce the 
financial and management . re- 
sources available if Plessey de- 
cided to attempt a takeover of 
Ferranti. 

News analysis. Page 16 


Bombing setback 


Continued from Page 1 


anti-aircraft 


mobile Rapier 
missile system. 

“ Our air defences, which had 
dome off the ships that morn- 
ing, were still being set up on 
tiie hillside overlooking tbe 
estuary,” he said. 

The bombs hit Sir Galahad 
through the engine room and 
accommodation section, while 
the impact of exploding ammu- 
nition on the ship was felt on 
shore 400 yars away. 

" I saw hundreds of men rush 
forward along the decks across 
the bold putting on their life- 
jackets, pulling on survival 
suits,” Nicholson said. As 
flames spread many jumped 
overboard and others were 


black 


rescued through deep 
smoke by helicopter. 

It is not clear how many men 
were on either ship. Each can 
carry depending on other loads, 
between 340 and 540 men and 
a crew of nearly 70. 

Neither is it clear precisely 
when the attack happened, 
though Argentina claims three 
attacks, beginning at lunchtime 
and ending at sunset on 
Tuesday. 

Until the full extent of the 
casualties and the damage is 
known it is not possible to judge 
what effect the Fitzroy action 


attacking the Task Force. 

The Ministry released fresh 
information last night on the 
attack on the Liberian regis- 
tered tanker Hercules on Tues- 
day. A radio- message in English 
was intercepted telling the 
Hercules to steer for an Argen- 
tine port and warning her that 
she would be attacked 15 
minutes later if she did not 
Margaret van Batten writes: 
The Government has not given 
up hope of securing UA 
participation in an international 
peacekeeping force 
But if necessary, Britain was 


may have on the campaign to ready to go it alone in def end- 
take Port Stanley. ing the islands, even if involv- 

No British aircraft were lost iug “quite considerable expen- 
in the combat with the Mirages diture,” she added. 


Insolvency law changes proposed 


BY DUNGAN CAMP BOA-SMITH 


MAJOR changes in insolvency impact of insolvency. The 'aim 
law were proposed yesterday by was “ to make sure that as well 


the review committee set up by 
the last government in 1977 to 
look into all aspects of 
insolvency law and practice. 


as doing the least possible barm 
to individuals, it does the least 
harm to the country’s economy 
as a whole.” 


The committee's report, sub- 
mitted confidentially to the 
Government in two parts in 
April last year, and in 
February this, but not published 
till yesterday contains recom- 
mendations affecting every area 
of insolvency law from personal 


respects to those arising under 
Chapter XT of toe U.S. Bank- 
ruptcy Code, notably the power 
to impose a 12-month mora- 
torium on debt repayments. 

Tho i-Afuit-4 riTinoQL: tha Sip K enneth said he was 

The report proposes tbeaboh- confident the report would 

of many categories of pro- eventually be legTuy enacted, 
ferred creditor, and a better **xt is relevant to business in 
deal for unsecured creditors of this day and age and if the 

con 2P? Jiy - Vai ? ou ? Government has got any sense 
abuses of present law on liqui- ftey ^ impfcmentk,” he 
datum are toe target of sug- y ^ 

gested new constraints on com- 


Mr Bill Mackey, receiver to 
Laker Airways and Stone-Piatt 
Industries in recent months, re- 
acted positively to the report 
But he said finding funds for 
an administrator could be a 


« Erectors aawell as Lwffi- 

bankruptcy to major company yi duals setting themselves up 
receivership; The report con- ^ receivers and liquidators 
eludes that the need to reform It xwommeuds a new treat- 

is “ urgent and imperative - co ^ imes who ? e Gnan - 

_ , aal circumstances somehow pro- __ - - . 

Sir Kenneth Cork, for many dude effective help being given proble m. The existence of this 
years toe best known insolvency by a receiver. Under Ibis major aJ * e T natlve option, however, 
practitioner in the country and innovation, an adnfinistrator ro** 111 hel P expedite receiver- 
dhairman of the committee, said could be appointed by a new S“-P at fl n earlier stage in a 
yesterday the central theme of Insolvency Court and could Q oni 3 )ai| y’ s decline, 
toe report was to m i nimis e toe draw on powers Rimiiar in many Details, Page 11 


Continued from Page 1 

Damascus 


UK TODAY 

CLOUDY with rain or showers. 
Dry in some areas. 

S.E., N_E_ and Central N. 
England, E. Midlands 
Dry then rain from W. Max 
23C (73F). 

S.W. England, Channel Is 
Showers and bright intervals, 
rain later. Max 19C (66F). 

S.E. and Central S. England, 
W. Midlands, Wales 
Rain then- showers. Max 23C 


of Beirut, bas meant frequent 
electricity cuts. 

Many streets are awash 
because waterpipes have burst 
and not been mended. The 
telephone system which once 
made Beirut the communica- 
tions centre of the Middle 
East is slipping behind even 
Egypt’s legendary incom- 
petence. 

Shops are closed in most 
places. But. worse than this, 
the pressures of war are 
brin ging violence to the 
streets. Flats are broken into 
—or rather the doors are 
shot down — by those fleeing 
from the fi ghting and seek- 
ing shelter. 


N.W. England, Lake District, 
Isle of Man, N, Ireland, S.W. 
Scotand, Glasgow, Argyll 
Cloudy, rain from W. Max 
ISC <64F). 

Borders and rest of Scotland 
Mostly dry, sunny intervals, 
coastal fog. Max 21C (76F). 
Outlook: Unsettled 


WORLDWIDE 


AJaoolo 
.VUgisrs 
Ants dm. 
Athens 

"BofireW, 
Bend no. 
Beirut 
Beltast 

Other refugees are camp- ® e, i g l ? 
ing under the trees in tbe 
hills above Beruit. The 
richer are crowding into 
hotels. Those who can -take 
to the road are hoping to get 
across the BeJkaa Valley 
before it becomes the wain 
battleground. 

The French and British 
have been advised to leave 
West Beruit for the eastern 
sector. Guns, for so long an 
everyday feature, are more 
apparent than ever not just 
in the shape of gun emplace- 
ments dug into the coastline 
south .of Beruit, but among 
the thugs who have taken 
over checkpoints abandoned 
by the Syrians and who stop 
and rob people. 

The chaos is such that it 
is not incredible — given that 
Syrians, Palestinians and 
Israelis' are all using this 
country for their own ends-r- 
that the Israeli advance was 
welcomed tacitly in some 
villages. ' Perhaps this was 
only because the Israelis, 
rather than anybody else, 
might be best equipped to 
settle Lebanon’s inherent 
problems. 


Y'day 
midday 
•C *F 
3* 75 
27 81 
T9 66 
25 77 

35 as 


19 68 
2S 77 
VS 01 
30 86 
23 73 
21 70 
30 86 
21 70 
25 77 


F 
F 

Berlin C 
Brerrrn F 
Bm0hm. S 
Blackpl. C 
Bordx. S 
Boutfln. S 
Bristol F 
Brussels F 20 -68 
Budp&t. F -28 79 
Cairo S 30 88 
CarcMT S 24 73 
Cas’b'ca C 21 70 
Cape T. S 18 64 
Ctueg.t — — 
Cologne F 21 70 
Cpntign. C 12 54 
Corfu F 28 79 
Denverf — — 
Dublm C 17 63 
Dbrvnk. S 24 75 
Ednbgli. C 13 55 
Faro S 24 75 
Florence F 29 84 
Frankfi. S 24 75 
Funchal S 21 TO 
Geneva F -29 79 
Gibrttr. F S 77 
Gl’sffw C IS 59 
G’rneay S 22 . 72 
HuhrfnM C - 7 45 
H. Rons . C 28 82 
liwwbrk. R 24 75 
Invmss. C 13 6S 
.o.hffan S 19 68 
Istanbul C 20 68 
Jersey S 23 73 
Jo'biMV B 17 63 
L Piffle. F 22 72 
Lisbon F 23 73 
Locarno F 25 77 
London S 19 68 


28. 82 


8 46 

24 75 
» 75 

25 77 


14 57 


Y*dey 
midday 1 
•C *F 
L Ang.f — — 
Luxmfag. S 21. 70 
Luxor. S 40 104 
Madrid F 28 - 82 
Majorca S 27 81 
Ma+ega S 28 79 
Malta S 28 79 
M’riwtr. C 20 68 
Metbne. S 16 59 
Mx. C.t — rr 

Mtondt 
Milan S 
Montrf.t 
Moscow C 
Munich F 
Nairobi F 
Naples F 
Nesaau 
Nwrafl. C 
N Yorict — — 
Woe S 24 76 
Nicosia S 24 75 
Oporto C 17 83 
Oslo S -14 57 
Paris S 24 75 
Penb F 16 59 
Pcapua P 21 70 

Rykjvk. C 14 57 
Rhodes S 23 73 
Bio J'ot — . 

Rome S 27 81 
Selzbrg. F 2S 77 
5 'c isc o f . — — 
S. Mrltz. — 

Stngapr. — — 
S'hSp.ot .. - 1 - — 
Sackhrn.: F 15 52 
Stmbg. S. 25 77 
Sydney R - 15 59 
Tangier S 23 73 
Tei Aviv S W 76 
Tenorffat F 22 72 
Tokyo B 29 77 
rtr'etot — 

Tun*a .-• S .2B 82 
VaWndo G 77 81 
Venice R-.21 TO 
Vienna . S 26 79 
Warsaw F .19 86 
ZWiCti ■: S -24 75 


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Compute and 
Maodectonics 


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£20,(XX)~£5Q(XX) 


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spedaEsirig m executive recmitm«it We are currently 
. extending cxir contacts witb senior ocecutives of ‘ 
outstanding aid achievement who are in the - 

■^oomputerand miaoetedrcmlcs industries, or in the - 
field of information technoJogji-We would like to hear 




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todr caress over tire next few years, feey should not 

ruleoutthepossibi%<^mc7vingtoabiggerjob’in 

another company. . » - . - . 




Any^MoacbwiHJbe treated nithe very 
strictest confidence. 


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F^-flain. S— Bunny. St— Sleet 
Sn— . Snow. T^-rTtiundar. 
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MANAGEMENT CONSr ttS^N ^; r~ 
OdgersandCoLid, One OldBandSt, A 






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’ Reproductloo buha canaeiits of thla 
Rag i stared at tha Pffat ' “ ’ 


Bracken House. Cannon, 


oSili t pJb2rf^li ,i# 4r ,n J/ y m annar Ur net pitfuiftMtf prior eonewrt of : ‘ 

15% -if*.,;-: 


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